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Zhu Su: How to lose from 10 billion U to 0 U?

时间:2024-02-05|浏览:259

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Zhu Su is a Chinese-born cryptocurrency investor, entrepreneur and social media influencer.

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He was the co-founder, CEO and chief investment officer of Three Arrows Capital and the founder of OX Protocol.

It can be said that he is famous for his investment achievements and influence on the market in the cryptocurrency field, but he has also been pursued and charged for alleged fraud, tax evasion and money laundering.

Three Arrows Capital: A leader in the cryptocurrency market

Zhu Su and his high school classmate Kyle Davies founded Three Arrows Capital in 2012 in Singapore, a hedge fund focused on cryptocurrencies and derivatives.

Three Arrows Capital initially engaged in foreign exchange arbitrage trading in emerging markets, and later turned to the cryptocurrency field, investing in many well-known projects and platforms including Bitcoin, Ethereum, Polkadot, Huobi, FTX, LUNA, etc.

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Three Arrows Capital's asset management scale once reached US$10 billion. It is one of the largest hedge funds in the cryptocurrency market and was once considered a "top-tier" presence among many hedge funds in the currency circle. ‘

As the leader of Three Arrows Capital, Zhu Su has also accumulated more than 500,000 Twitter followers and has become an opinion leader and market benchmark in the cryptocurrency field.

Three Arrows Layout: Diversification, Foresight and Boldness

Three Arrows Capital’s investment strategy in the cryptocurrency field can be summarized in three words: diversification, forward-looking and bold.

Diversification

Three Arrows Capital not only invests in various types of cryptocurrencies, such as Bitcoin, Ethereum, etc., but also invests in projects on various tracks, such as decentralized finance (DeFi), non-fungible tokens (NFT), Metaverse, Cross-chain Bridge, Stablecoin, etc.​

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Three Arrows Capital has also invested in various forms of platforms, such as exchanges, wallets, lending, oracles, insurance, derivatives, games, etc. Three Arrows Capital’s investment portfolio covers all aspects of the cryptocurrency space, demonstrating its deep understanding of the market and extensive participation.

Forward-looking

Three Arrows Capital not only focuses on current market trends and hot spots, but also focuses on future market potential and opportunities.

Three Arrows Capital invested in Polkadot, a blockchain network that supports cross-chain interoperability, in 2017. At that time, Polkadot had not yet been officially launched and was just a concept and white paper.

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Three Arrows Capital also invested in LUNA (Terra), an algorithm-based stablecoin ecosystem in 2018. At that time, LUNA was not yet known to the public and was just a niche project. These investments of Three Arrows Capital show its foresight and insight into the cryptocurrency field, and have also brought huge returns to it.

Boldness

Three Arrows Capital not only dares to invest in emerging and unknown projects, but also dares to increase investment and leverage amid market volatility and uncertainty.

Three Arrows Capital once bought Bitcoin heavily on March 12, 2020, the day known as "Black Thursday", when the price of Bitcoin plummeted by nearly 50%, and even used 100 times leverage. As a result, huge profits were obtained in the subsequent market rebound.

Three Arrows Capital also bought Ethereum in large quantities on May 19, 2021, the day known as "Bloody Wednesday", when the price of Ethereum plummeted by nearly 40%, and even used 50 times leverage. , thus achieving considerable gains in the subsequent market recovery.​

These investments of Three Arrows Capital show its confidence and determination in the cryptocurrency market, and have also won the respect and awe of the market.

LUNA Incident: A fatal blow for Three Arrows Capital

Three Arrows Capital’s investment achievements and market influence have made Zhu Su and his team a giant and star in the cryptocurrency field, but it has also made them a thorn in the side of regulators and competitors. Three Arrows Capital finally suffered a fatal blow to its investment career, which was the LUNA incident in 2022.

The LUNA incident refers to a serious security breach in the main network of LUNA (Terra) on September 30, 2022, which resulted in the theft of a large number of LUNA tokens and the failure of the anchoring mechanism of LUNA's stable currency UST. , causing the price of UST to fluctuate significantly, even falling below $0.1 at one point. The impact of the LUNA incident was not limited to LUNA and UST, but also spread to the entire cryptocurrency market, triggering a massive panic and sell-off, leading to a market crash and bloodshed.

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Three Arrows Capital is one of the largest investors in LUNA and one of the largest users of UST. Three Arrows Capital lost billions of dollars in assets in the LUNA incident, as well as its credibility and position in the market. To make matters worse, Three Arrows Capital has also been investigated and prosecuted by regulatory agencies and law enforcement agencies in multiple countries for its alleged ties to the hackers of the LUNA incident.​

Three Arrows Capital was accused of being the mastermind behind the LUNA incident. It used its influence and control in the LUNA network to deliberately create security holes, thereby implementing a premeditated insider trading and market manipulation, both from hackers and from hackers. Obtained a large amount of LUNA tokens and sold a large amount of UST from the market, thus obtaining huge illegal profits.

Three Arrows Capital has denied the accusations, claiming that it was a victim of the LUNA incident, not the one behind it, and that it had no connection or cooperation with the hackers. Three Arrows Capital also stated that its actions in the LUNA incident were based on normal investment and risk management considerations and did not have any illegal or unethical intentions or behaviors.

However, these excuses did not allow Sanjian Capital to get out of trouble, but instead put it into greater trouble. Regulatory agencies and law enforcement agencies in many countries, such as the U.S. Securities and Exchange Commission (SEC), the U.S. Department of Justice (DOJ), the Monetary Authority of Singapore (MAS), the People's Bank of China (PBOC), etc., have launched in-depth investigations into Sanjian Capital. Investigation and review, and even issued arrest warrants and wanted orders, requiring senior executives of Three Arrows Capital, especially Zhu Su, to cooperate with the investigation and appear in court for trial.

OX Protocol: Zhu Su’s last ditch effort

Faced with such a severe situation, Zhu Su and his team did not choose to surrender or compromise, but chose to escape and fight back.

Zhu Su and his team used their resources and networks in the cryptocurrency field to successfully evade pursuit and arrest by various countries, and at the same time secretly planned a new project called OX Exchange.

Zhu Su hopes to rebuild his reputation and status in the cryptocurrency field through OX Exchange, while also sending a strong signal to regulators and competitors that he will not give up and give in easily, but will continue to work for crypto. The development of money and the fight for freedom.

However, Zhu Su's plan did not come true and instead led to his complete downfall. After the launch of OX Exchange, although it was welcomed and appreciated by some users and supporters in the cryptocurrency field, it also encountered more criticism and resistance, and was even considered a dangerous and evil existence that threatened cryptography. Legality and security of currency.

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The main problem with the OX exchange is that it is too paranoid and radical. Not only does it not bring more freedom and rights to users and participants in the cryptocurrency field, but it puts them into more risks and crises, such as fraud and theft. , extortion, money laundering, terrorism, etc.

Conclusion

Zhu Su is a figure full of controversy and paradox. His investment achievements and market influence in the field of cryptocurrency have made him a giant and star, but it has also made him a criminal. His story is also a microcosm of the cryptocurrency field. It shows the charm and potential of cryptocurrency, as well as the risks and challenges of cryptocurrency.

Zhu Su’s story also provides us with some inspirations and lessons t

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