Su Zhu is a well-known name in the world of finance and cryptocurrency. He was once regarded as one of the most successful hedge fund managers in the digital asset space.
Zhu co-founded Three Arrows Capital (3AC), a cryptocurrency hedge fund that gained fame for its massive returns during the 2021 crypto bull run.
However, his journey has been anything but smooth. This article takes a closer look at Su Zhu’s net worth, how he built his fortune, the collapse of his company, and what he is doing today.
Key Points:
- Early Career in Traditional Finance: Su Zhu started his career at Goldman Sachs and Credit Suisse, where he gained valuable experience in trading and financial analysis.
- Founding Three Arrows Capital (3AC): Zhu co-founded 3AC with Kyle Davies in 2012, originally focusing on trading traditional assets before pivoting to cryptocurrencies.
- Rise During the Crypto Bull Run: 3AC gained massive success during the 2021 cryptocurrency bull run, with its portfolio heavily invested in Bitcoin, Ethereum, and other digital assets.
- Collapse of Three Arrows Capital: Over-leveraged positions and the belief in a “super cycle” led to the downfall of 3AC in 2022, resulting in billions of dollars in losses.
- Legal Troubles and Asset Freezes: Following the collapse, Su Zhu faced legal actions, including frozen assets worth over $1 billion by a British Virgin Islands court, and was later imprisoned in Singapore for mismanaging funds.
- Launch and Shutdown of OPNX: In 2023, Zhu attempted to re-enter the crypto space by co-founding OPNX, an exchange for trading bankruptcy claims. The venture failed, and the exchange is shutting down in February 2024.
- Current Status and Future Prospects: With the closure of OPNX and ongoing legal challenges, Su Zhu’s future in the crypto industry remains uncertain, though he continues to share insights on financial markets through social media.
Su Zhu’s Net Worth
Su Zhu’s net worth was once estimated to be over $1 billion, largely thanks to his investments and success in the cryptocurrency market. However, following the collapse of Three Arrows Capital (3AC), his net worth has significantly decreased.
As of now, his estimated net worth is around $50 million. Much of this remaining wealth comes from his private investments, though recent developments have further impacted his financial standing.
The collapse of 3AC and subsequent legal troubles resulted in more than $1 billion in assets belonging to Su Zhu, Kyle Davies, and Davies’ wife, Kelly Chen, being frozen by a British Virgin Islands court.
Additionally, Su Zhu was arrested in Singapore for failing to assist with the liquidation process of 3AC, further complicating his financial situation.
The Rise of Three Arrows Capital
After leaving a career in traditional finance at firms like Goldman Sachs, Su Zhu co-founded Three Arrows Capital with Kyle Davies. Initially, the firm was focused on trading in the foreign exchange market but soon shifted its attention to digital assets.
The firm made massive gains during the 2021 crypto bull market, with its portfolio heavily invested in Bitcoin, Ethereum, and other altcoins. This period of exponential growth turned Su Zhu into a crypto billionaire almost overnight.
However, the strategy that worked during the bull market backfired when the market started to decline. Zhu and Davies were known for promoting the idea of a “super cycle” in which crypto prices would continue to rise without the typical bear market dips.
This overconfidence proved costly when the market turned against them. As prices plummeted, Three Arrows Capital faced massive liquidations and eventually went bankrupt.
The Fall: How Su Zhu Lost His Fortune
The collapse of Three Arrows Capital marked a turning point in Su Zhu’s career. His firm, which was once a giant in the crypto trading world, became insolvent due to its high-risk bets and leveraged positions.
As the market crashed, 3AC’s positions were liquidated, resulting in the loss of billions of dollars of investor funds. The collapse of 3AC sent shockwaves through the crypto community and brought intense scrutiny from regulators.
Adding to the turmoil, in September 2023, Su Zhu was imprisoned in Singapore for mismanaging customer funds. This marked a dramatic fall from grace for someone who was once seen as a visionary in the world of digital assets.
The OPNX (Open Exchange) Shut Down
Su Zhu, along with Kyle Davies, attempted to make a comeback with the launch of OPNX (Open Exchange) in 2023, a platform designed for trading bankruptcy claims and other distressed assets. However, this venture did not last long.
The exchange recently announced that it would be shutting down. Customers were advised to settle their positions by February 7, 2024, and withdraw their funds by February 14, 2024. The decision to close OPNX marks yet another setback for Zhu and his co-founder, Kyle Davies.
Starting Of OX.FUN
After the closure of OPNX, the exchange founded by Su Zhu and Kyle Davies following the collapse of their hedge fund, Three Arrows Capital (3AC), Su Zhu shifted his focus to a new project—OX.FUN. Founded in 2024, OX.FUN is a decentralized perpetual contract trading platform designed to offer unique features such as dual-token rewards and the use of the OX token as collateral.
Su Zhu, now serving as the co-founder of OX.FUN, aims to leverage his extensive experience in cryptocurrency and financial markets to develop a more secure, flexible, and transparent trading platform. OX.FUN allows users to engage in perpetual contract trading using the OX token as the base collateral, supplemented by a dual-token model involving both OX and MILK tokens. This setup enables users to speculate on cryptocurrency prices with leverage and earn rewards even when their trades are not profitable.
Timeline of Su Zhu’s Life and Career
- 1987: Su Zhu is born in China.
- 2009: Graduates from Columbia University with a degree in Computer Science and Economics. Starts his career in finance by joining Credit Suisse.
- 2012: Co-founds Three Arrows Capital (3AC) with Kyle Davies, initially focusing on arbitrage trading and foreign exchange.
- 2018: 3AC pivots to focus heavily on cryptocurrency trading and begins building a reputation as a successful hedge fund in the crypto space.
- 2021: During the crypto bull run, 3AC’s portfolio reaches new heights, making Su Zhu a crypto billionaire. Zhu and Davies promote the idea of a “super cycle” in the crypto market.
- 2022: The crypto market crashes. Due to over-leveraged positions and market miscalculations, 3AC becomes insolvent. Zhu and Davies face heavy scrutiny as they fail to manage liquidations properly.
- July 2022: More than $1 billion in assets belonging to Su Zhu, Kyle Davies, and Kelly Chen are frozen by a British Virgin Islands court due to the collapse of 3AC.
- September 2023: Su Zhu is imprisoned in Singapore for failing to cooperate in the liquidation process of 3AC.
- April 2023: Su Zhu and Kyle Davies launch OPNX, an exchange aimed at trading bankruptcy claims and other distressed assets, attempting to rebuild their reputation in the crypto industry.
- February 2024: OPNX announces its shutdown. Customers are advised to settle positions by February 7 and withdraw funds by February 14, marking another failed venture for Zhu.
- 2024: Launch of OX.FUN. Founded in 2024, OX.FUN is a decentralized perpetual contract trading platform designed to offer unique features such as dual-token rewards and the use of the OX token as collateral.
- Present Day: Su Zhu remains active on social media, where he discusses financial markets and crypto trends. However, his influence has diminished due to his past failures and ongoing legal challenges.
Conclusion
Su Zhu’s story is a cautionary tale of both remarkable success and devastating loss. From his early days at Goldman Sachs to co-founding Three Arrows Capital, his journey in the world of finance is marked by bold decisions and high-stakes gambles.
While his net worth and reputation may have taken severe hits, his story serves as a lesson on the highs and lows of investing in volatile markets and the consequences of overconfidence. As Su Zhu navigates the aftermath of his business failures and legal troubles, his future in the crypto world is left in question.
