Three Arrows Capital (3AC) co-founders Su Zhu and Kyle Davies have decided to launch their own memecoin, Three Arrowz Capitel.

The duo previously led a hedge fund that blew up, had its dwindling assets frozen by court order, and still owe billions of dollars to creditors. Authorities in Singapore arrested Zhu last year for failing to comply with court instructions.

Branded under a purposeful misspelling of their failed hedge fund and retweeted from their official social media accounts, the duo are now promoting a trading-focused Telegram channel to go with the newly-minted ERC-20 token.

Unfortunately for their mostly retail audience, up to 84% of its supply was held by insiders as of yesterday afternoon.

• 71.8% is now in a Team & Insider wallet.
• The token also imposes a punishing 1% tax on every buy and sell. The duo claims they will recirculate this tax to help their community swap the token for other ‘bags.’
• Finally, insiders control another eight wallets with generous allocations, bringing their total insider ownership to approximately 84% as of yesterday afternoon.

Read more: 3AC founder Kyle Davies not sorry for his actions, intends to avoid prison

Three Arrowz Capitel trading near a nickel

From its $0.192 all-time high on September 27, the coin has lost over 70% of its value. It now trades near a nickel and the token’s price chart since inception traces a classic pump-and-dump formation.

Only 9.3% of the token’s supply is available for liquidity on Uniswap and non-insider traders own a single-digit percentage. It has also lost over one-fifth of its value in the past 24 hours.

The launch of their new memecoin has raised concerns about Zhu and Davies’ focus. Despite the serious nature of their alleged harm to former investors, they have decided to launch a misspelled memecoin and post brain rot to a Telegram channel.

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Su Zhu, the once-imprisoned co-founder of collapsed hedge fund Three Arrows Capital (3AC), took to X (formerly Twitter) to promote MAJIN, a supposedly expert trader with ‘surgical levels of analysis’ who, according to him, posted the world’s best commentary for traders during last weekend’s crypto market crash.

Earning hundreds of thousands of impressions, MAJIN is a curious recommendation for several reasons. Commenters under Zhu’s endorsement immediately called MAJIN a scammer and rug-puller among various expletives.

Elsewhere, critics claim that MAJIN has asked for money, reneged on promises, and failed to refund victims. In any case, Protos reached out to MAJIN for comment on his contentious background.

MAJIN, whose username ‘MajinSayan’ is a Dragon Ball Z reference, has spent most of the year posting about DeFi trades and traders. He claims to have been “kicking against nepotistic circles, insider schemes, actual fraud, and other anomalies.”

“Don’t leave that out of the article,” he underscored.

Aside from Zhu’s endorsement, the next most popular tweet about MAJIN is an allegation by widely respected forensic investigator ZachXBT that MAJIN helped raise over 160 ether for an abandoned NFT project, The Bazaar.

The Bazaar made MAJIN famous for all the wrong reasons. He spent a long time promoting the NFT collection which has been abandoned since 2022. Its website is offline entirely.

According to ZachXBT and many critics, MAJIN solicited hundreds of thousands of dollars for the project and then refused to gain a refund for any victims. In a comment to Protos, MAJIN obviously disagreed with this characterization.

MAJIN’s post-mortem on The Bazaar

“What happened with The Bazaar is separate from me getting into cycles of self-destruction. I was not in charge of the treasury, I apparently also legally have no link with the corporation that was set up, but no one did anything wrong,” MAJIN said.

“The two devs/co-founders just were delaying things to keep building the codebase. All logistics were put in place. Some equity deals and other offers of partnerships were rejected by the devs who did not want to sell themselves short.

“At some point, the 2021 top was in, our previous angels backed out, and there was no runway to launch. So we had to start pitching to every VC in the industry. I recall the entirety of LUNA meltdown busy pitching. In the end, some, that showed interest, still didn’t go through with it, either because logistics and scaling of real world is less secure than virtual projects, or because it was a dark bear market in 2022.

“In the end, nothing could be done to start the project which otherwise was fully ready and merely out of runway due to an unfortunate set of circumstances. There were even some that showed interest in buying the codebase, or sparking life into the frozen project. But like I said, since I have no legal link to the corporation, and I’m not in charge of any decision, I don’t have control over why and how that stuff did not happen.”

Read more: Expert in losing money Su Zhu says you can afford to lose $10k

MAJIN explains cycles of self-destruction

Next, MAJIN responded to other criticisms.

“On the other point: Me taking on debts, and staying unstable, kept getting stuck in cycles of self-destruction. I will not be ashamed of hardships I have caused or experienced, and it disturbs me that it’s being used as a discrediting campaign today, instead of, let’s say, last year.

“Nor did I intentionally try to harm anyone, I haven’t intentionally tried to take advantage of anyone, I have explicitly rejected all extractive offers for promoting projects, and have been called retarded by everyone offering since that’s how normalized it is. 

“So what are you publishing about? A guy whose real-world NFT project got let down by an industry focused on projects that secure value-extraction. A guy that let himself slip into darkness. A guy that finally escaped that abyss.  

“Furthermore, I want to reiterate that there are worse things happening, on higher scales, which actually deserve our attention right now. So publishing an article about me in this case, helps no one.”

Protos asked one final question: Do you have any on-the-record response to claims that you’ve asked for loans or other temporary funds and failed to return that money to lenders or people who expected repayment?

MAJIN responded, “Don’t worry, everything will eventually be cleared.”

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Three Arrows Capital (3AC) co-founder Su Zhu has claimed that “$10,000 is an amount you can definitely afford to lose if you’re in the Western world because you’ll earn that back in salary.”

Zhu made the claim on the OX podcast when asked what he would do if he started in crypto today in search of the mythical ‘100x.’

The disgraced 3AC founder and former jailbird was speaking to Frank DeGods (real name Rohun Vora) on a video titled ‘Frank Degods teaches Su Zhu how to 10x the OXFUN userbase by turning off 99% of his brain.’

During the two-hour conversation, DeGods probed Zhu about the path to ‘100x,’ asking him “If you started with $10,000 today in crypto, how would you maneuver?”

Zhu replied, “Definitely don’t do it on trading or that kind of stuff. I think you need to find a good coin — I think there’s a lot of 100x’s right now.”

Read more: 3AC founder Su Zhu says prison ‘good for you’ after four-month stay

He continued, “You have to get in very early so you have to screen it a bit, maybe split it into five stacks of 2,000 and just go big on some coins.

“The other nice thing about $10,000 is that it’s an amount you can definitely afford to lose if you’re in the Western world or the developed world because you’re going to earn that back in salary as well.

“If you have a salary or if you have earnings then you can afford to lose more money because you earn it back.”

He also claimed that if you’re early in crypto, you don’t want to be “too cautious.”

More financial advice from a man who’s fund blew up

Despite the implosion of his own fund barely two years ago, the failure of his follow-up bankruptcy claims platform, and a four-month stint in a Singaporean jail, Zhu hasn’t been shy about handing out financial advice.

As well as advising the OX podcast listeners on what to do with their ‘easily-earned’ $10,000, just last month he attempted to tell $2 billion Ethena how to manage risk.

Zhu suggested that Ethena should leverage up the long side of the trade to keep the ETH ‘funding rate’ high. Rather than simply holding USDe’s staked ETH collateral, he advised using it to borrow more ETH on decentralized finance (DeFi) protocol Aave.

Read more: Ethena offers 27% on stablecoins but where is the yield coming from?

The extra funds would then be used to buy perpetual swaps, boosting the demand for leverage and keeping USDe yields up.

Comparisons have been drawn between Ethena’s USDe and Do Kwon’s collapsed algorithmic stablecoin UST, which also offered outsized ‘stable’ yields via the Anchor protocol.

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Kyle Davies, the founder of bankrupt Three Arrows Capital (3AC), was recently interviewed on the cryptocurrency podcast Unchained. During the interview, Davies explained how he intends to avoid his prison sentence in Singapore, how he still believes his actions were not fraudulent, and why “Uncle Kyle’s Chicken restaurant” is still unlaunched. 

Davies claimed the pending Singaporean prison sentence was a surprise, blamed his and Su Zhu‘s lawyers for not adequately reminding them about the court date that they missed, and also said that “this is not my full-time job.” Despite their lawyers apparently being responsible for their prison sentences, Davies noted that he has not fired his lawyers, though he did muse that, “maybe we should.”

Davies also noted that he does not intend to return to Singapore for as long as the prison sentence is waiting for him. Davies has also not returned to the United States since the collapse of Three Arrows Capital, but claims that he could if he wanted.

According to Davies, the only regulatory issue that Three Arrows has had to face, comes from Singapore. Davies also claimed that the lack of further regulatory action is de facto evidence of an absence of fraudulent activity from him and his business partners. 

Davies challenged those who claim that the financial status of Three Arrows Capital was misrepresented to “prove it” and further claimed that the 3AC due diligence process was “always done per what would make sense at that time,” although he admitted that it was not “really strict.”

When asked about a payment made in the final hours of Three Arrows Capital to a related entity that liquidators have been unable to track that people have theorized was a payment to the “mob,” Davies denied any association, though he could not describe where the funds went, and then launched into a tirade against the “lamestream” media in which he discussed how important “free speech” was.

Despite his dedication to free speech, Davies-advised OPNX filed a defamation lawsuit against someone who criticized the company, and the exchange even issued a ‘Justice Token’ to pay out proceeds of settlements from these suits. 

Davies insists that he did not trade while Three Arrows Capital was insolvent.

Throughout the interview, Davies railed against statements the liquidators have made, often describing them as “posturing” or “bluster” and claiming that both sides are “playing chess.” Davies expressed regret that Three Arrows did not come up with an alternative to bankruptcy, referencing the BFX token that was issued by Bitfinex before confusingly describing it as a “brother or sister firm.”

Read more: 3AC founder Su Zhu says prison ‘good for you’ after four-month stay

Kyle Davies activities since the collapse

Despite not being able to return to Singapore and yet to return to the United States, Davies has found other places where he continues to focus on himself, making sure to note how important it was for him to go to Bali: “If you blow up, go into full liquidation, you go to Bali.”

Davies has remained very active since the collapse of Three Arrows Capital, including “advising” OPNX, an exchange that was at times intended to trade “fungible” bankruptcy claims and was also intended to be a massive cryptocurrency exchange. OPNX was started with CoinFLEX, another bankrupt cryptocurrency exchange.

CoinFlex creditors have claimed that these activities have drained assets from the exchange’s estate. Laura Shin, the interviewer, referenced a photoshoot including Davies, Zhu, and Mark Lamb from CoinFlex, which creditors have accused of costing the estate almost $32,000, a fact that Davies claimed was untrue.

When asked about claims that he received $25,000 per month from the CoinFLEX estate, Davies denied the source, but not the amount, stating, “I was a billionaire before.”

Davies also suggested that OPNX’s missteps are mainly due to CEO Leslie Lamb not listening to his “advice.”

Davies and Zhu are currently advisors to a token project that he describes as a “gamified derivatives platform” that does not disclose its founders or funders. During the interview, Davies was unwilling to disclose that information, claiming that privacy is a fundamental cryptocurrency belief.

During the course of the interview, Davies never once apologized or indicated remorse for his behavior, insisting that on a long enough timeline, “every company goes bankrupt.”

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The cryptocurrency and bankruptcy claims trading platform OPNX, created by Su Zhu, Kyle Davies, Mark Lamb, and Leslie Lamb, will officially cease to exist on February 24, according to X (formerly Twitter) account @tier10k.

But while the current platform will be shutting down, the disgraced entrepreneurs behind it have pivoted to a decentralized exchange that will utilize their cryptocurrency, OX, to discount trades.

By creating a decentralized exchange as opposed to a bankruptcy claims platform, the downtrodden founders are able to avoid applying for necessary licenses and permits in numerous jurisdictions, freeing them of responsibility and risk while providing all the rewards.

Read more: Zhu Su and Kyle Davies’ exchange OPNX is failing

Promotional collapse

Three of the four founders — Zhu, Davies, and Lamb — took to X to vaguely discuss their decentralized exchange and post awkward metaphors about their big comeback. The new exchange is making bold promises already, including 200% interest on staking its cryptocurrency, huge referral fees, and incredibly liquid books.

There is no longer any mention of claims trading, which was the original concept for the OPNX platform.

While the announcement of the closing of OPNX was met largely with celebration on X, few commentators or influencers seemed to understand that the serial scammers weren’t simply shutting the network down, but instead herding any users left to a new entity where they would no longer be exposed to existential legal risks.

While the price of their token fell nearly 40% when news of the closure was initially reported, it has rebounded somewhat — the coin is trading at $0.009 at the time of writing.

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Promotional clips of an unreleased podcast with Three Arrows Capital (3AC) founders Su Zhu and Kyle Davies have been shared online, wherein the duo spoke fondly of prison life, the dominance of incel rhetoric, and the ‘goofiness’ of Andrew Tate’s earlier videos.

Zhu went to prison for four months in Singapore for attempting to flee the country in violation of a court order. His short stay had a lasting impact, according to clips from the podcast. “I think that it’s an enjoyable experience overall,” Zhu said. “Like, I would say, not to the point of like, highly recommending it per se, but I would say that it’s something that if everyone got to experience once, I think it’s definitely good for you.“

The 3AC founder elaborated on his point, stating that medieval forms of fun are afforded to you in prison. “All the things they allow you to do still in prison are the things that, like, in the ancient days, like, would still be considered entertainment, right?”

You can read “all the books you want,” Zhu said. “You can do all the pushups you want.” Three meals a day are provided, including all the fruit one could need, he explained of his time in Singapore prison. “And then the sleep is amazing,” Zhu continued, “because they’ll turn the light off at 9:30pm and the light comes back on at 5:30. But because you have no internet time, you have no alcohol, no caffeine, whatever, you’re just gonna fall asleep immediately.”

“I actually had the best sleep of my life in prison,” Zhu claimed.

Zhu went on to describe how the mats inmates were provided in lieu of beds improved his spine health and allows one to “feel, like, kinship with your ancestors.“

While conditions in Singapore prisons are nothing to write home about, it’s likely that Zhu experienced higher standards in his short stay than Do Kwon is still experiencing in Montenegro prison.

Read more: Autism may be the only asset left for 3AC founders after $1B frozen

Other clips of the unreleased podcast show Zhu discussing how incel thinking has become dominant in mass media and the US presidential race. A 17-second segment of the men reminiscing on the early videos of self-proclaimed mysoginist and alleged human trafficker Andrew Tate was also included, in which Zhu says that Tate raised “very philosophical” questions about whether it’s “more gay” to sleep with a man with female genitalia or a woman with male genitalia.

“Yeah, super deep,” the men concluded about Tate’s early work.

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A British Virgin Islands court has stepped in to prevent Three Arrows Capital (3AC) founders Kyle Davies and Su Zhu from transferring or selling more than $1 billion in assets with creditors still chasing the collapsed fund’s owners for more than $3 billion.

The announcement came one day after a domestic freezing order was issued by a court in Singapore. 3AC operated out of Singapore but filed for bankruptcy in the British Virgin Islands.

According to a statement from 3AC’s liquidator Teneo, $1.4 billion in assets have been frozen while creditors are still owed somewhere in the region of $3.3 billion. Davies’ wife Kelly Chen has also been barred from moving assets.

“The worldwide freezing order has been sought in connection with claims that are being pursued by the liquidators that allege, amongst other things, that the founders should be held responsible for causing 3AC’s position to deteriorate by an amount that is equivalent to the value of the freezing orders sought,” the statement read.

Just hours before the assets were frozen, Zhu posted to X (formerly Twitter) that “Autism is an asset, not a liability.”

Read more: Genesis settles with 3AC to pay 96.7% less than the $1B it claimed

In the wake of the court order, he soon found himself being ridiculed by fellow users who pointed out that, if that’s the case, it may be the only asset he has left.

Zhu questioned in court for first time

Earlier this month, lawyers in Singapore questioned Zhu in court for the first time as they continue the search for the billions of dollars of outstanding creditors’ funds.

In a two-day private hearing, Zhu took questions from lawyers representing Teneo and, according to unnamed sources close to the proceedings, questioning focused on how and why 3AC failed and exactly where the missing assets went.

Zhu was arrested under a committal order at Singapore’s Changi Airport in September after he ignored a court order and attempted to flee the country. The order stipulated that both Zhu and Davies were to be arrested on sight and imprisoned for four months.

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Lawyers in Singapore have questioned Three Arrows Capital (3AC) founder Su Zhu in court for the first time as they continue the search for billions of dollars of creditors’ funds, reports Bloomberg.

In a two-day private hearing this week, Zhu took questions from lawyers representing Teneo, the firm tasked with liquidating 3AC. According to unnamed sources close to the proceedings, questioning focused on how and why 3AC failed and exactly where the missing assets went.

Teneo estimates that somewhere in the region of $3.3 billion is owed to 3AC creditors and the liquidator is seeking to claw back $1.3 billion from Zhu and his 3AC co-founder Kyle Davies.

Zhu was arrested under a committal order at Singapore’s Changi Airport in September after he ignored a court order and attempted to flee the country. The order stipulated that both Zhu and Davies were to be arrested on sight and imprisoned for four months. Zhu is reportedly set to be released this month for good behavior.

Liquidators are still hunting Davies.

Read more: Su Zhu’s $35M estate transformed into farm by eco-friendly wife

3AC settled with Gemini for 97% less than it claimed

Last month, 3AC settled a $1 billion claim with crypto lender Genesis for $33 million.

Following “extensive negotiations,” both parties agreed to a “fair and equitable” agreement, according to a court letter from Genesis.

The lender concluded that the settlement is “in the best interests” of debtors’ estates and its creditors after it “considered the risks” of 3AC’s litigation.

In Genesis’ letter, it stated that the deal will “significantly smooth the path to confirmation of Genesis debtors’ chapter 11 plans” and “eliminate the risks, expenses, and uncertainty” of dragging out the lawsuit.

The deal would also “mutually release each other from liability,” according to the filing.

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The luxury Singapore bungalow once owned by Su Zhu, the co-founder of collapsed Three Arrows Capital (3AC), and his wife, Dr. Evelyn Tao, is now the site of an urban farm that hosts guided tours, composting sessions, corporate getaways, and fine dining. 

According to The Business Times, the Yarwood Avenue property has been operating as an urban farm since early 2023. It’s now run by agriculture initiative, the Habitat Collective, and Abundant Cities, at which Tao is the chief science officer and co-founder.

It claims to “practice soil-based farming, design and build food gardens, and promote sustainable living through education, events and workshops.”

The bungalow’s swimming pool has been converted into a natural pond, a fruit forest has been planted alongside the property perimeter, and its lawn has been replaced with 26 various garden beds, to name just a few of the alterations to the property.

Classed as a good class bungalow (GCB), the spacious house comes with ownership of the land it sits on.  

The pair bought the property for S$48.8 million ($35 million) in December 2021. It was then reported in June 2022 that the couple intended to sell the house by December that same year. CoinDesk noted that a slowing market for detached homes may have influenced Su Zhu’s decision to sell the property.   

Read more: Your guide to the Sam Bankman-Fried trial — starting today

The Business Times approached liquidators for 3AC about the property, but they refused to comment.

Zhu was arrested at Singapore Airport last week while attempting to flee the country. Liquidators have previously attempted to track down both Zhu and Kyle Davies to recover any assets that are owned by the firm, or purchased with 3AC funds.

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The co-founder of collapsed Three Arrows Capital (3AC), Su Zhu, has been arrested at the airport in Singapore today after he flouted a court order against him and attempted to flee the country on an airplane, according to a statement made by 3AC’s liquidator.

Teneo, the firm tasked with liquidating 3AC, announced the arrest this afternoon. According to the statement, Zhu was apprehended at Changi Airport under powers granted through a committal order. 

The committal order, requested by Teneo and granted by the courts on Sept 25, signaled to the police that both 3AC co-founders, Zhu and Kyle Davies, are to be arrested on sight and imprisoned for four months. It was granted after Zhu decided to not follow a previous court order that demanded he cooperate with liquidators.

“Mr Zhu will be held in prison to serve his sentence of 4 months under the committal order,” Teneo said. During this time of imprisonment, the 3AC liquidator says it will begin to engage with Zhu in an effort to recover any assets owned by the firm, or any that have been purchased with 3AC funds. 

Read more: Singapore hands 3AC’s Zhu and Davies 9-year markets ban

“The liquidators will pursue all opportunities to ensure Mr Zhu complies in full with the court order made against him for provision of information and documents relating to 3AC and its former investment manager during the course of his imprisonment,” the Teneo statement reads.

Zhu and Davies were also handed a nine-year market ban this month by the Monetary Authority of Singapore.

Davies, on the other hand, has evaded Singapore authorities and remains missing. He has previously been active on X (formally Twitter) while refusing to respond to a court subpoena.

His X bio claims, “This account is managed by Kyle Davies team, he does not read social media.”

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