The luxury spending hobby of the founder of a crypto fund has just gone bankrupt

 The two founders of 3AC were said to live more lavishly than even the richest billionaires in Singapore before the crypto fund went bust.

According to CNBC, Three Arrows Capital (3AC), based in Singapore, has a history of managing up to $ 10 billion in assets and is considered one of the largest cryptocurrency investment funds in the world.

Before falling into a stalemate and having to file for bankruptcy due to erroneous investments in Luna and UST, 3AC had 10 years of operation in the cryptocurrency market. Nik Bhatia, a professor of finance and business economics at the University of Southern California, said 3AC was once considered the "big brother in the industry". This helps co-founders Zhu Su and Kyle Davies become prestigious names, gaining many credits. However, now, when the $10 billion investment fund suddenly collapsed, both have almost disappeared on social networks.

Court documents obtained by Fortune show that Zhu Su and Kyle Davies, 35, lived lavish lives before going bankrupt. The two used the company's money to buy one of the most expensive yachts in Singapore, worth 50 million USD. According to the plan, the yacht will be handed over in the next two months in Italy.

"Davies wanted the yacht to be more impressive than those owned by Singapore's richest billionaire. Zhu and his wife are said to have used the company's money to buy two rare wooden villas in Singapore for $35 million in January. December of last year," the filing reads.

Kyle Davies and Zhu Su are said to have used the company's $50 million to buy luxury yachts. Photo: Dailicoin
Co-founders Kyle Davies and Zhu Su are said to have used the company's $50 million to buy luxury yachts. Photo: Dailicoin

Meanwhile, billionaire Vitalik Buterin, co-founder of Ethereum, commented on Twitter: "There are more ways to spend $50 million to impress others than buying a yacht."

Dailicoin quoted the authorities as saying that it is highly likely that the two co-founders of 3AC will find a way to move their assets elsewhere. Most of the assets they still hold are cryptocurrencies and cash. Previously on June 14, 3AC transferred 31 million USDT and 900,000 USDC to Tai Ping Shan Limited in the Cayman Islands. This is a company owned by Zhu and Kelly Kaili Chen.

Meanwhile, court documents obtained by CNBC show that lawyers representing 3AC's creditors have not been able to reach Su and Davies. The two co-founders have kept quiet and have made no move to show that they want to cooperate in returning the money to the partner.

According to analysts, the cause of 3AC's bankruptcy may be the collapse of the Luna project. In an earlier interview with the WSJ, 3AC said the company had purchased $200 million worth of Luna, while another report showed it had invested up to $560 million. The Singapore court representative went to 3AC's office but found only closed doors. The founders of 3AC are said to have fled just four days after investors requested a hearing in the US in early July.

Analysts believe that the collapse of Luna has dragged down the entire cryptocurrency market, and many investment funds have also been severely affected. "In the crypto world, there's no such thing as 'too big to fail' - too big to fail," CNBC said.
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