{"id":12437,"date":"2022-08-16T14:39:24","date_gmt":"2022-08-16T14:39:24","guid":{"rendered":"https:\/\/scienceandnerds.com\/2022\/08\/16\/150-million-much-wow-yacht-left-behind-by-crypto-hedge-funds-collapse\/"},"modified":"2022-08-16T14:39:25","modified_gmt":"2022-08-16T14:39:25","slug":"150-million-much-wow-yacht-left-behind-by-crypto-hedge-funds-collapse","status":"publish","type":"post","link":"https:\/\/scienceandnerds.com\/2022\/08\/16\/150-million-much-wow-yacht-left-behind-by-crypto-hedge-funds-collapse\/","title":{"rendered":"$150 million \u2018Much Wow\u2019 yacht left behind by crypto hedge fund\u2019s collapse"},"content":{"rendered":"

Source: https:\/\/www.theverge.com\/2022\/8\/15\/23306349\/three-arrows-capital-3ac-collapse-kyle-davies-su-zhu-cryptocurrency<\/a>
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The now bankrupt Three Arrows Capital (3AC) presented signs of mismanagement before the cryptocurrency hedge fund\u2019s ultimate collapse. A report from New York <\/em>Magazine<\/a> reveals that 3AC co-founders Kyle Davies and Su Zhu faced criticism from banks and other traders before the company even entered the crypto market.<\/p>\n

In its early days, the Singapore-based 3AC got into foreign exchange (FX) trading and reportedly practiced something called currency arbitrage<\/a>, which allowed Zhu and Davies to cash in on mispriced quotes from different brokers, even if it resulted in gains of just \u201cfractions of a cent on each dollar traded.\u201d According to New York <\/em>Magazine, banks would sometimes try to contact 3AC in an attempt to call off or adjust the trade, but the firm would refuse. Banks reportedly began cutting off 3AC by 2017.<\/p>\n

\u201cWe FX traders are partly to blame for this because we knew for a fact that these guys were not able to make money in FX,\u201d a former trader told New York <\/em>Magazine. \u201cBut then when they came to crypto, everyone thought they were geniuses.\u201d<\/p>\n

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