Who are Su Zhu & Kyle Davies?

After five weeks in hiding, the disgraced founders of Three Arrows Capital spoke extensively about the spectacular implosion of their once high-flying hedge fund, saying their bungled crypto speculation unleashed cascading margin calls on loans that should never have been made. Su Zhu and Kyle Davies, both 35, first became friends in high school.

Why did Zhu & Davies put 3AC on a trade?

Zhu and Davies, long among the most vociferous crypto bulls in an industry known for extremes, put on trades – turbocharged by leverage – that put 3AC at the center of a series of implosions that convulsed the crypto market as prices retreated this year from their highs last fall.

Is 3AC a separate company?

In the industry, TPS is known as 3AC’s “over-the-counter” desk, though it’s a separate company in which Zhu and Davies hold a stake. Last week it released a statement saying that even though the two companies have referred business to each other and it has coordinated loans for 3AC, its operations are distinct. Three Arrows’ office in Singapore.

What happened to 3AC?

In mid-June 3AC, as it’s known, fell victim to the death spiral of stablecoin TerraUSD and its sibling governance token Luna that obliterated the fund’s $200 million investment into Luna Foundation Guard made in February .