From $3 Billion to Zero in Just 3 Days — The Fall of Su Zhu

Once hailed as a genius in crypto finance, Su Zhu, co-founder of Three Arrows Capital (3AC), went from managing billions to total collapse — in just 72 hours.

The rise was meteoric.

In 2012, Zhu was a trader at Deutsche Bank.

By 2021, he led the most powerful hedge fund in crypto, with billions in AUM and bold bets on market cycles.

But his empire had a fatal flaw: reckless leverage.

3AC borrowed from everyone — BlockFi, Voyager, Genesis — then borrowed more on top of that. The strategy? Bet big and hope the market never turned.

Zhu wasn’t just risking his own capital. He had:

• Funds from billionaires

• Assets from other hedge funds

• Trust from crypto OGs

All invested into risky positions, including a $500 million bet on LUNA — which vaporized in 48 hours during its 2022 crash.

That collapse triggered a domino effect. Bitcoin tumbled. Collateral vanished. Creditors lined up. And Su Zhu? He disappeared.

Why did it all fall apart?

• No risk management

• Extreme leverage

• Zero transparency

3AC’s model only worked in a bull market. The moment prices dipped, the house of cards came crashing down.

The crash of Three Arrows Capital became one of the largest failures in crypto history — wiping out investors, shaking trust, and exposing the danger of unchecked greed.

Su Zhu’s story is a warning:

Even in crypto, leverage kills.

#CryptoCrash #CryptoLessons #BitcoinCollapse #DeFiDrama #CryptoHistory