Three days from $3 billion to zero — this is not some fictional story, but a real drama that unfolded in the crypto world. I recently recalled that story — how Su Zhu and Three Arrows Capital went from industry darlings to cautionary tales.

Speaking of Su Zhu, in 2021 he was at the peak of his fame. An entrepreneur from Singapore, starting as a regular trader at Deutsche Bank, he built Three Arrows Capital into a leading industry fund. His trading style was very aggressive — daring to borrow and invest, and the market praised his boldness. But I later realized that behind those seemingly impressive moves was an extremely risky financial game.

His secret to success boiled down to four words: reckless borrowing. BlockFi, Voyager, Genesis — any institution willing to lend, Su Zhu could borrow from them. And then? He would use that money to borrow even more. Leverage upon leverage. Three Arrows Capital looked like a towering, glittering house of cards — seemingly magnificent, but actually fragile and ready to collapse at any moment.

What’s even more outrageous is that he controlled a large amount of industry funds, yet on social media he was talking about a “super cycle,” while spending millions of dollars on rare NFTs. I was thinking at the time — this guy’s understanding of risk management might really be flawed.

The turning point came quickly. In May 2022, Luna collapsed, and Three Arrows Capital’s $500 million investment vanished instantly. Many thought it was just a small fluctuation, but little did they know it was just the beginning. Bitcoin plummeted, the entire market crashed, and Su Zhu’s borrowing and leverage strategy completely failed. Imagine using $2 billion in assets to borrow $1 billion, and then the asset value halves — you’re done — debt piling up, bankruptcy the only outcome.

Creditors started chasing their debts, but Su Zhu disappeared into thin air. It wasn’t until September 2023 that he was caught at Changi Airport in Singapore trying to flee with a fake passport. Once a crypto industry icon, he ended up behind bars, facing up to 10 years in prison. His $50 million mansion was seized, his once-valuable NFTs turned to junk, and his reputation was utterly destroyed.

After hearing this story, many might say Su Zhu was just unlucky. But I think that’s not the case. His failure wasn’t about luck — it was an obsession with leverage and a complete lack of risk management. His wealth empire was like a house of cards built with playing cards — looking indestructible, but easily toppled with a single poke.

This story teaches us a profound lesson: in the crypto market, true wealth isn’t about how much you make, but how much you can preserve. Leverage is like gravity — it can lift you high, but it can also make you fall hard. Success that seems too easy often hides the greatest dangers. Su Zhu’s story is over, but his failure should serve as a warning to everyone.