$150 million ‘Much Wow’ yacht left behind by crypto hedge fund’s collapse
by Emma Roth from The Verge - All Posts on (#62HGM)
Illustration by Alex Castro / The Verge The now bankrupt Three Arrows Capital (3AC) presented signs of mismanagement before the cryptocurrency hedge fund's ultimate collapse. A report from New York Magazine 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.
In its early days, the Singapore-based 3AC got into foreign exchange (FX) trading and reportedly practiced something called currency arbitrage, which allowed Zhu and Davies to cash in on mispriced quotes from different brokers, even if it resulted in gains of just fractions of a cent on each dollar traded." According to New York Magazine, banks would sometimes try to contact 3AC in an attempt to call off or adjust the trade,...