In a seismic shock that continues to ripple through the crypto community, Su Zhu, co-founder of the tragically ended Three Arrows Capital (3AC), was recently oxygen-deprived at Singapore’s Changi International Airport, leading to an unexpected deviation in his planned route or his so-called ‘entrepreneurial ventures.’ Questions also swirl around the whereabouts of his fellow 3AC mastermind, Kyle Livingston Davies, adding to the overall disunity.
For those unfamiliar with their turbulent history, 3AC was handling over $10 billion in digital assets before its dramatic crash last June. A few missteps on the Terra ecosystem saw the entity’s resources nosedive, leaving its creditors with a gaping $3.5 billion hole in their investment portfolios. The reverberating shockwaves from the collapse brought financial strife for companies such as Celsius, Voyager and FTX and sparked a legal labyrinth of asset recovery scenarios.
As news of Zhu’s arrest spread, faces of OPNX holders drained of colour, metaphorically speaking. On the day the news broke, the Open Exchange Token plummeted by almost 60% to hang precariously at $0.01. Reflecting on the past month, the token has lost a staggering 79% of its value, leaving the fully diluted market capitalization teetering at a mere $77 million. This compares unfavourably with its June total of over $300 million, a hard pill to swallow for all involved.
Gears turn ceaselessly behind the scenes to recover as many assets as possible. Appointed 3AC liquidator Teneo reports their focus on “recovering the assets of 3AC and maximising returns for its creditors.” Optimism sometimes springs from unconventional sources, with their recovery effort taking an unexpected turn to non-fungible tokens. An action by Sotheby’s snared $13.4 million, injecting a glimmer of hope into the saga.
All eyes are now on the fallout and how quickly order can be resorted. While it’s true that setbacks teach lessons and improve future safeguarding, the bitterness left by this saga is tough to wash away. After all, defeated by ‘a clerical error’, as some observes would argue, isn’t how anyone planned to end this crypto adventure.
In the grand scheme, such events direct a harsh light on the need for regulation and fail-safes within the crypto world. When two individuals can lead so many investors unwittingly into a financial quagmire, it underlines the extremes of risk and reward in this fast-paced realm. Despite these recent tempestuous events, people’s fascination with digital currency remains undimmed, but a note of caution wavers in the air. It serves as a stark reminder that the wild ride of cryptocurrency investing is not for those faint-hearted or unprepared.
Source: Cointelegraph
