Crypto Titan's Downfall: Zhu Behind Bars, Davies on the Run

I couldn't believe my eyes when I saw the news. Su Zhu, once the golden boy of crypto, now locked up in a Singapore prison. His partner Kyle Davies? Nowhere to be found, probably island-hopping through jurisdictions without extradition treaties.

These guys ran Three Arrows Capital (3AC) like their personal casino, managing $18 billion at their peak. And what did they do with all that power? Gambled it away on LUNA and other high-risk plays without a shred of proper risk management. Classic crypto bros thinking they were untouchable.

What pisses me off most is how they operated. The Monetary Authority of Singapore discovered they straight-up lied about their portfolio manager's appointment and misrepresented his employment status. That's not just "oops we made a mistake" territory—that's deliberate deception.

The domino effect they triggered was catastrophic. When LUNA collapsed in May, their house of cards came tumbling down. They missed margin calls, defaulted on $665 million to Voyager Digital, and eventually the whole thing imploded. Their recklessness didn't just hurt them—it dragged down 27 companies and caused over $3 billion in losses across the industry.

Now Zhu's sitting in a cell for failing to cooperate with bankruptcy proceedings while Davies is playing global hide-and-seek with authorities. These guys were once speaking at major conferences and influencing markets with their tweets. Now one's in prison and the other's on the run.

The Singapore regulators didn't mess around either—slapping them with a nine-year ban from the industry. Too little too late if you ask me, but at least some form of justice is being served.

What happened to 3AC should be a warning to everyone in crypto. No matter how smart you think you are or how much money you have under management, arrogance and greed will eventually catch up to you. The system might be slow, but it's catching up to these cowboys one by one.

I wonder where Davies is hiding right now, probably sipping cocktails somewhere while investors who trusted them lost everything. Some people just don't know when to face the music.