Three Arrows Capital collapse — what creditors were owed and recovered (2022)
Claims were converted to US dollars at the June 2022 liquidation date, near the bottom of the 2022 market, so any percentage describes dollars owed then, not the coins creditors deposited. The liquidators' own estimate of the eventual return has fallen from 45.74% (December 2023) to about 35.16% (March 2026); that is a forecast, not money already paid.
Case facts
| Customers lost access | |
|---|---|
| Insolvency filed | June 27, 2022 |
| Business | Fund or trading firm |
| Jurisdiction | British Virgin Islands |
| Procedure | LiquidationEastern Caribbean Supreme Court, High Court of Justice (BVI), Commercial Division · BVIHC(COM)2022/0119 |
| Owed to creditors | $3,500,000,000Published estimates range $2,700,000,000 to $3,500,000,000154 creditors |
| Distributed so far | $422,500,000 |
| Recovery | —Petition-date USD — Claims were fixed in dollars at the date the case opened, and repaid against that fixed figure. Says nothing about the value of the assets originally deposited. |
| Cause | Market or leverage lossesLeveraged bets, Terra/LUNA and GBTC losses |
| Case status | Distributions under way |
What happened
Three Arrows Capital was a Singapore-managed, BVI-incorporated crypto hedge fund. It failed to meet margin calls from mid-June 2022 after leveraged positions, a large Terra/LUNA holding and a discounted Grayscale trust stake moved against it; BlockFi confirmed on 16 June 2022 that it had liquidated the collateral of a large client, and Genesis later confirmed 3AC was the counterparty it had liquidated.
On 27 June 2022 the Eastern Caribbean Supreme Court in the BVI ordered the fund into liquidation and appointed Russell Crumpler and Christopher Farmer of Teneo (BVI) as joint liquidators. Chapter 15 recognition followed in the US Bankruptcy Court for the Southern District of New York on 28 July 2022.
Creditor affidavits filed in 2022 showed lenders had advanced about US$3.5 billion. Teneo's December 2023 report recorded 154 claims totalling US$3.4 billion, of which about US$2.7 billion was expected to be recognised for distribution, against assets of US$1.16 billion.
The BVI court sanctioned a first interim distribution of up to US$100 million on 28 March 2024 following a 14 March claims bar date. Published summaries of the liquidators' March 2026 status report record six interim distributions declared totalling US$450 million, of which about US$422.5 million had been paid after claim adjustments, anticipated total recoveries of about US$1.18 billion as at 16 March 2026, and roughly US$382 million of assets still held in the estate.
Charges and enforcement
- MAS nine-year prohibition orders against Zhu Su and Kyle Livingston Davies under the Securities and Futures Act
- effective 13 September 2023 — imposed and in force.
- Singapore committal orders of four months' imprisonment each for deliberate failure to comply with orders to cooperate with the liquidators
- granted 25 September 2023 — Zhu Su was arrested at Changi Airport on 29 September 2023 and served the sentence; Davies has not been apprehended.
- BVI insolvent trading claim of about US$1.1 billion brought by the liquidators against both founders — civil
- contested
- trial listed in two parts during 2026.
- Dubai's VARA fined OPNX
- the exchange the founders launched afterwards
- AED10 million
- plus AED200
- 000 on each of four co-founders including Zhu and Davies (2023) — the individual fines were paid
- the corporate fine was reported unpaid as at August 2023.
Sources
- OgierSecondary · retrieved 2026-08-21
- Erskine ChambersSecondary · retrieved 2026-08-21
- Monetary Authority of SingaporePrimary · retrieved 2026-08-21
- The BlockSecondary · retrieved 2026-08-21
- The BlockSecondary · retrieved 2026-08-21
- TechCrunchSecondary · retrieved 2026-08-21
- Max AverySecondary · retrieved 2026-08-21
Cite this
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iTokenly Crypto Failure Registry, "Three Arrows Capital collapse — what creditors were owed and recovered (2022)", iTokenly, accessed 2026-08-21, https://itokenly.com/failures/three-arrows-capitalhttps://itokenly.com/failures/three-arrows-capitalPermalinks never change. If an entry is renamed, the old address keeps working.
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