Zhu Su, co-founder of the now-bankrupt Three Arrows Capital (3AC), has been arrested in Singapore, according to a tweet from online news aggregator db. The reason behind the arrest and the nature of any charges brought are currently unknown.3AC’s downfall was a shocking event in the crypto industry, given its prominent position and substantial investment stakes in projects such as LUNA, Aave, Avalanche, BlockFi, Deribit, and Solana. The company’s lack of a robust risk management framework, coupled with reckless dealings and a significant degree of greed, set the stage for its collapse.The chain reaction leading to 3AC’s collapse was set off when LUNA, a major investment of the firm, experienced a crash in May. Despite managing approximately $18 billion in crypto assets at its peak, 3AC failed to meet its margin calls in June, leading to speculation about the firm’s financial status. Subsequently, the failure to repay borrowed money from crypto broker Voyager Digital, totaling $665 million, led to further destabilisation in the industry.The Monetary Authority of Singapore (MAS) issued a nine-year prohibition order against 3AC founders Zhu Su and Kyle Davies. MAS’s investigation revealed that 3AC had failed to inform the regulator about the appointment of Cheong Jun Yoong Arthur as its portfolio manager and had misrepresented his employment status. These actions, in addition to an inadequate risk management framework, were attributed to the failures of Zhu and Davies in fulfilling their duties.3AC’s collapse had far-reaching effects, impacting not just its stakeholders but also other companies in the industry. Voyager Digital was forced to file for bankruptcy due to the lack of repayment from 3AC. The cascade of events led to damages totaling more than $3 billion, affecting 27 companies in total.
This News Article was automatically generated by Bob the Bot (AI)
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Asia |
| Countries | 🇸🇬 |
| Sentiment | negative |
| Relevance Score | 10 |
| People | Zhu Su, Kyle Davies, None, Cheong Jun Yoong Arthur |
| Companies | Three Arrows Capital (3AC), Solana., Voyager Digital, Deribit, Aave, Monetary Authority of Singapore (MAS), BlockFi, Avalanche, LUNA |
| Currencies | Blockasset, Aave, Bitcoin, Ethereum, Avalanche, deribit, Solana, Terra Luna Classic |
| Securities | None |
