3Ac Collapse event

Event · PageRank 0.0000

Overview

Three Arrows Capital (3AC) was a crypto hedge fund founded in 2012 by Su Zhu and Kyle Davies that collapsed in June 2022. Heavily leveraged and largely borrowing without collateral, it was crippled when its roughly $200 million position in LUNA went to near zero in May 2022, and a British Virgin Islands court ordered its liquidation on 27 June 2022. Its failure cascaded through crypto lenders — including a $665 million loan default to Voyager Digital — and bankruptcy filings recorded around $3.5 billion in creditor claims. Liquidators from Teneo pursued Zhu and Davies for $1.3 billion, Singapore's monetary authority reprimanded the firm, and Zhu was jailed for four months in 2023 for failing to cooperate with the liquidation.

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Frequently asked questions

When and how did Three Arrows Capital collapse?

A British Virgin Islands court ordered its liquidation on 27 June 2022, after the fund's leveraged positions — notably about $200 million in LUNA — collapsed in May 2022.

Who founded Three Arrows Capital?

Su Zhu and Kyle Davies founded the fund in 2012.

What was the knock-on effect on other firms?

3AC defaulted on a $665 million loan from Voyager Digital and left roughly $3.5 billion in creditor claims, contributing to the 2022 wave of crypto lender failures.