There’s no better way to learn about finances than talking about those who have amassed much of it, like Su Zhu. Likewise, there’s no better way to warn against destructive actions than to tell the tragic events of someone’s life, like Su Zhu. The Singaporean entrepreneur learned it all, won it all, and eventually lost it all in his movie-like story. However, Su Zhu, now worth around $50 million in estimation, remains a prominent figure in the world of cryptocurrency, entrepreneurship, and finance.
Before Su Zhu met his wealth-draining Waterloo, especially during the bull run in 2021, Su Zhu amassed a net worth reaching multiple millions of dollars. So, how did he blow away his fortune so easily? In today’s article, we will explore the life and works of Su Zhu, the secrets behind his fortune, his jail term, and his fate and that of his company today.
Who is Su Zhu?
Su Zhu is widely known in the crypto space, especially as he is the founder of the now-defunct Three Arrows Capital (3AC). He was also directly involved in the establishment of the popular cryptocurrency exchange, Open Exchange (OPNX).
Zhu was born in China in April 1987 into a family that makes ends meet quite seamlessly. At age 6, however, Su Zhu moved to the United States for educational purposes and to also get a better life. He attended high school at Phillips Academy in Andover, Massachusetts, and graduated in 2006. Zhu developed a stern interest in calculations during his early school days, and that shaped his choice of course to study. For his first degree, therefore, Su Zhu attended Columbia University and graduated summa cum laude with a bachelor’s degree in mathematics.
After schooling, Su Zhu immediately began searching for a means to make ends meet. He migrated to Tokyo to trade derivatives at Credit Suisse before working as a trader at Flow Traders in Singapore in 2009. Zhu also worked at Goldman Sachs as a trader for a short time in 2011. These minor businesses were stepping stones for Zhu, as his exploits later showed bits of knowledge gained from these experiences.
What Is Su Zhu’s Net Worth?
Su Zhu’s net worth should have been a tale of absolute success and awe, but that’s not the case. During the peak of his endeavors as a founder of 3AC, Su Zhu had a net worth that reached over $1 billion. Zhu leveraged his vast knowledge of economics, computer science, and analytics to generate market strategies that yield high returns.
Su Zhu (and his friend, Davies) established Three Arrows Capital in 2012 with that orientation. The exchange quickly became a popular crypto trading platform, earning him great fortune. Unfortunately, Su Zhu’s net worth suffered a loss almost as quickly as he gained it. Despite reaching its peak in 2022, 3AC failed to meet numerous margin calls that led to its liquidation and the ban of its owners.
Reports claim, however, that after all the ban and legal saga, Su Zhu’s net worth still sails around $50 million. Obviously, that’s a far cry from the previous value – but it’s still something, isn’t it?
Three Arrows Capital
After leaving Goldman Sachs in 2011, Su Zhu went fully into the cryptocurrency world, meeting like-minded in the process. Soon, in 2012, he and Kyle Davis established Three Arrows Capital, a digital firm focused on digital assets like cryptocurrencies. He created this firm to potentially capitalize on the growing interest in cryptocurrency around that time.
Zhu’s plans worked out perfectly at last, however, thanks to the massive influx of users into cryptocurrency trading, particularly those using his exchange platform. The fund’s assets under management peaked in 2022 at over $10 billion. Consequently, Su Zhu amassed massive wealth and reached over $1 billion in net worth.
Three Arrows Capital’s Liquidation
It all began on June 22, 2022, when the Wall Street Journal reported that the 3AC had failed to pay a $665 Bitcoin and USDC loan to Voyager Digital. As a result, the Monetary Authority of Singapore banned Su Zhu and Kyle Davis from the financial sector for nine years, and he was also sentenced to a four-month prison term. During the investigation, the liquidators revealed they were trying to recover $1.3 billion from Davis and Zhu.
In the middle of the problems, Zhu and his colleague were rendered insolvent. So his net worth went from $1 billion to below $10 million within months! Besides the company’s failure to meet its margin calls, Zhu also made risky trading decisions on the BTC network, which led to him losing lots of dollars.
Su Zhu and Kyle Davis were pioneers of the “Super Cycle,” which assumed that the usual 4-year cycle of Bitcoin is breaking. Their prediction was a steady bullish run, which they termed their “Bullish Selling.” However, things didn’t quite go as expected for them – and their followers. They lost lots of money to the trade and even more because of their overconfidence in their failing strategy.
Conclusion
Su Zhu’s net worth has seen a significant fluctuation since he was once considered a billionaire during the cryptocurrency market’s 2021 bull run but is now worth less than one-tenth of a billion. Nevertheless, his new worth estimation comes from his private investments and involvement in the crypto exchange OPNX (Open Exchange).
