Is 3AC insolvent?

The now insolvent Three Arrows Capital has $3.5B of debt according to affidavits. The 3AC founders filed a $30M claim against their own company while on the run. 3AC founders Su Zhu and Kyle Davis have just been detained at an airport in Dubai, while trying to board a private jet to Switzerland.

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.

Was 3AC mismanagement before it collapsed?

The now bankrupt Three Arrows Capital (3AC) presented signs of mismanagement before the cryptocurrency hedge fund’s ultimate collapse. A report from New York Magazine reveals that 3AC co-founders Kyle Davies and Su Zhu faced criticism from banks and other traders before the company even entered the crypto market.