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How Three Arrows Capital Missed Every Target They Aimed

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Three Arrows Capital (3AC) just wiped out its investment capital of nearly $3 Billions in months. The cause of the collapse like through high leverage decentralized finance (DeFi) and high debt ratios.

Let's explore why 3AC instantly collapses.

Founders

Su Zhu and Kyle Davies are the founders of 3AC. The company was founded in 2012 to provide superior risk-adjusted returns. Ironically, the risk did not adjust properly, and the company went out of business instantly.

Investment Strategy

We do not know how 3AC invest their funds, but we do know they invested in:

Yacht:

%[https://twitter.com/unusual_whales/status/1549068269956411393]

Own houses:

%[https://twitter.com/JackNiewold/status/1549153907921850373]

How to Run a Crypto VC like a Criminal

%[https://twitter.com/JackNiewold/status/1549152912986853377]

Step 1: run Step 2: sue your own company Step 3: aks your spouse to join the lawsuit

Bankruptcy Document

Thanks to the internet and the transparency of the Singapore law, you can learn a lot from the court document on what happened on 3AC.

%[https://twitter.com/rektdiomedes/status/1549174615452180480]

Some breakdown of the investment portfolio:

Genesis - $2.3B Rest of the 24 companies - $1.2B

Founders on the run while suing their own company.

%[https://twitter.com/coinbureau/status/1549261248553840641]

Where is My Money

Try to ask where is my money:

%[https://twitter.com/FreddieRaynolds/status/1549099292710895622]

%[https://twitter.com/zhusu/status/1546801270014758912]

Many companies invest in 3AC forces to liquidate. DRB Panama is one of them.

%[https://twitter.com/DeribitExchange/status/1537458993781669891]

Where are the Founders

Founders ran away while filing to sue their own company.

%[https://twitter.com/Cryptofung/status/1546476266508980224]

And they enjoy their private jet on investors' cash

%[https://twitter.com/0xBender/status/1549464116045041664]

Anyone who Touches 3AC is Cursed

%[https://twitter.com/ViktorBunin/status/1549761977479843849]

Coinbase just announced they did not have invested 3AC.

True Degen

3AC brings all true Degen together to blow up:

%[https://twitter.com/wassielawyer/status/1549094403062779905]

%[https://twitter.com/FatManTerra/status/1549066466565169157]

%[https://twitter.com/adamscochran/status/1546477191420170240]

And what is up with Kelly Chen?

%[https://twitter.com/Stephen_Andr41/status/1549151972171063296]

More to Come

%[https://twitter.com/HukAleksandra/status/1547546120175370241]

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Photo by Ricardo Arce on Unsplash

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