Three Arrows Capital, commonly called 3AC, was an investment firm founded in 2012 by Su Zhu and Kyle Davies that became known for cryptocurrency investing. Its British Virgin Islands entity, Three Arrows Capital Ltd, entered court-ordered liquidation on 27 June 2022. The collapse exposed substantial loans made to the firm by other cryptocurrency businesses.123

Investment lossesReport an errorSuggest an improvement

The collapse of Terra's LUNA token in May 2022 damaged one of 3AC's investments. In June, Davies told the Wall Street Journal that the firm had invested $200 million in LUNA and had been caught off guard by the Terra collapse, according to The Block's account of that interview. He said the firm was considering asset sales, a rescue, and agreements with creditors.1

This account describes one exposure rather than a complete balance sheet. A different part of the crisis was borrowing: on 27 June 2022, Voyager Digital announced that its operating subsidiary had issued 3AC a default notice on a loan comprising 15,250 BTC and 350 million USDC. Voyager said required payments had not been made and that it would pursue recovery.3

The loan's two denominations matter. Its bitcoin component changed value with the market, while the USDC component was a separate token obligation. Treating a contemporaneous dollar estimate as the permanent size of the debt would obscure that distinction.3

LiquidationReport an errorSuggest an improvement

The joint liquidators' official site records the 27 June 2022 order of the Eastern Caribbean Supreme Court in the British Virgin Islands and the appointment of Russell Crumpler and Christopher Farmer. It provides claim forms and notices for creditors, with additional materials restricted to approved creditors. A liquidation appointment starts a recovery and claims process; it does not itself establish that creditors have been repaid.2

As of 31 October 2026, the public liquidation site lists an eighth notice of intention to distribute, dated 1 June 2026, following a seventh notice in March. These notices document continuing administration; they do not by themselves establish a final recovery rate.2

Singapore enforcementReport an errorSuggest an improvement

The Monetary Authority of Singapore's September 2023 announcement concerned the related Singapore company, Three Arrows Capital Pte Ltd, where Zhu had been chief executive and Davies chairman. MAS described its earlier reprimand for false information, notification failures, and exceeding the assets-under-management limit applicable to its registration.4

Following further investigation, MAS said the company had failed to notify it of a representative's employment, provided false information about that work, and lacked an appropriate risk-management framework for cryptocurrency investments. MAS held the two directors responsible for those compliance failures.4

The resulting nine-year prohibition orders took effect on 13 September 2023. They barred the founders from regulated activities and specified management, directorship, and substantial-shareholding roles in capital market services firms under Singapore's Securities and Futures Act. These regulatory findings concern particular legal duties, distinct from the separate liquidation process and creditors' recovery claims.42

See alsoReport an errorSuggest an improvement

ReferencesReport an errorSuggest an improvement

  1. ^ a b Rummer, A., and Harley-McKeown, L. (2022-06-17). Three Arrows Capital considers asset sales and bailout, WSJ reports. The Block. https://www.theblock.co/news/markets/2022-06-17-three-arrows-capital-considers-asset-sales-and-bailout-wsj-reports-152682 

  2. ^ a b c d Joint liquidators. 3AC Liquidation. https://3acliquidation.com/ 

  3. ^ a b c Voyager Digital (2022-06-27). Voyager Digital Provides Market Update. Company release via PR Newswire. https://www.prnewswire.com/news-releases/voyager-digital-provides-market-update-301575492.html 

  4. ^ a b c Monetary Authority of Singapore (2023-09-14). MAS issues Prohibition Orders against Three Arrows Capital's Zhu Su and Kyle Livingston Davies. https://www.sgpc.gov.sg/api/file/getfile/MAS%20Media%20Release%20-%20MAS%20issues%20Prohibition%20Orders%20against%20Three%20Arrows%20Capital%20Zhu%20Su%20and%20Kyle%20Livingston%20Davies.pdf?path=%2Fsgpcmedia%2Fmedia_releases%2Fmas%2Fpress_release%2FP-20230914-1%2Fattachment%2FMAS+Media+Release+-+MAS+issues+Prohibition+Orders+against+Three+Arrows+Capital+Zhu+Su+and+Kyle+Livingston+Davies.pdf