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

Source: W3C DAO

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

He was the co-founder of Three Arrows Capital, CEO and Chief Investment Officer, and founder of OX Protocol.

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

Three Arrows Capital: The leader in the cryptocurrency market

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

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

Three Arrows Capital’s asset management scale once Reaching 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 : Diversity, 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 in various tracks< /strong>, such as Decentralized Finance (DeFi), Non-Fungible Tokens (NFT), Metaverse, Cross-chain Bridge, Stablecoin, etc.  

Three Arrows Capital also invests in various forms of platforms, such as trading 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, it was just a Concepts and white papers.

Three Arrows Capital also invested in LUNA (Terra) in 2018. An algorithm-based stablecoin ecosystem. 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 in the face of market volatility and uncertainty.

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

Three Arrows Capital also bought Ethereum heavily on May 19, 2021, the day known as "Bloody Wednesday", when the price of Ethereum plummeted by nearly 40%. Even 50 times leverage was used, resulting in considerable gains during the subsequent market recovery.  

These investments by 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: Three Arrows Capital’s fatal blow

Three Arrows Capital’s investment achievements and market influence have made Zhu Su and his team a It has created giants and stars 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 also led to the stability of LUNA The anchoring mechanism of the currency UST failed, causing the price of UST to fluctuate significantly, even falling below 0.1 US dollars at one time. The impact of the LUNA incident was not limited to LUNA and UST, but also rippledinto the entire cryptocurrency market, triggering a massive panic and sell-off that resulted in a market crash and bloodshed.

Three Arrows Capital is one of the largest investors in LUNA , is also 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 loopholes and thus implemented a fraudulent scheme. Premeditated insider trading and market manipulationnot only obtained a large amount of LUNA tokens from hackers, but also sold a large amount of UST from the market, thus obtaining huge illegal profits.

Three Arrows Capital denied these accusations, claiming that it was a victim of the LUNA incident, not the mastermind behind it, and that it had no contact 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 defenses did not let Sanjian Capital 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 targeted the Three Arrows Capital launched an in-depth 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 Agreement: Zhu Su’s last ditch effort

Faced with such a severe situation, Zhu Su and his team did not choose to surrender Or compromised, choosing instead to flee and fight back.

Zhu Su and his team used their resources and network in the cryptocurrency field to successfully evade pursuit and arrest by various countries, while also secretly planning a new project, It's 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 fight for the development and freedom of cryptocurrency.

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.

The main problem with the OX exchange is that it is too paranoid and radical. Not only does it not Bringing more freedom and rights to users and participants in the cryptocurrency field has instead exposed them to more risks and crises, such as fraud, 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, It made him a giant and a star, but it 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 that we can learn from to better understand and participate in the cryptocurrency field.

Cryptocurrency is an innovative and revolutionary technology and idea. It brings new possibilities and opportunities to the development and progress of human society, but it also brings new problems and Challenges require us to use new perspectives and methods to understand and deal with them.