According to the co-founder of Three Arrows Capital, which suffered one of the largest hedge fund trading bankruptcies with its June collapse, cryptocurrency crises can take the industry back almost ten years.
“The Cryptocurrency Industry Has Gone Back Years With The Collapse of FTX”
According to Bloomberg’s report, in a rare face-to-face interview in Abu Dhabi, Su Zhu said:
“Some industry leaders said the collapse of FTX set the industry back five years. I think it’s even longer than that, seven or eight years, maybe even longer if the underlying issues are not resolved.”
Zhu and the company’s co-founder Kyle Davies were among the industry’s hottest bulls, known for their excesses. The company was among those who triggered this year’s crash in the cryptocurrency market with its leverage-backed transactions.
Crisis last month FTX bitcoin worsened by the stock market crash.
After 3AC’s more than $4 billion under management fell to zero, former Credit Suisse AG investor Zhu says he spent a long time talking to regulators. Zhu has recently returned to the United Arab Emirates, which has developed as a crypto hub over the past year.
In the days after 3AC’s collapse, the firm’s founding partners were criticized by court-appointed liquidators for their failure to cooperate with legal proceedings and making “fragmentary disclosures”, while Singapore’s central bank denounced them for misinformation.
Zhu responded by accusing the liquidators of misleading the Singapore Supreme Court about the hedge fund’s structure.
After months of contemplating the extraordinary collapse of 3AC, Zhu said he was interested in the idea of establishing a new business enterprise. Zhu stated that he is planning a fund in his mind that invests in both cryptocurrencies and traditional investment products, adding:
“But I don’t think we’re in a rush. The dominoes have just begun to fall. There are many more dominoes.”
*Not investment advice.
For exclusive news, analytics and on-chain data Telegram our group, twitter our account and YouTube Follow our channel now! Moreover Android and iOS Start live price tracking right now by downloading our apps!