- Su Zhu believes prison is “good for you.”
- The 3AC co-founder developed an appreciation for the lack of amenities.
- 3AC is currently undergoing bankruptcy, with billions still owed.
Three Arrows Capital (3AC) co-founders Su Zhu and Kyle Davis were arrested and sentenced to four months in prison in September 2023 for failing to cooperate with investigations around the crypto hedge fund’s collapse. Despite the grim circumstances, Zhu recently portrayed an upbeat account of prison life, even describing beneficial routines allowing “the best sleep of my life” during incarceration.
Prison Good for You, 3AC Co-Founder Says
During a recent video podcast, Zhu gave insight into his experience, stating that the daily routine and strict policies governing the prison led to deep, restful sleep. This was aided greatly by no access to the internet or stimulants such as alcohol or caffeine.
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“The sleep is amazing because they turn the light off at 9:30, and the light comes back on at 5:30. But because you have no internet time, no alcohol, no caffeine, you're just going to fall asleep immediately… I had the best sleep of my life in prison,” commented Zhu.
Zhu’s surprisingly positive account of prison life centered around the lack of amenities, which enabled him to connect with the ancestral way of life before modern comforts were widespread in developed countries. For instance, he found that sleeping on the floor helped decompress his spine, leading to a “magical” appreciation of the old ways and how individuals are “supposed to live.”
With plenty of time to read and exercise, as well as three meals a day, including regular fresh fruit, Zhu maintained that incarceration is “definitely good for you” but stopped short of recommending prison.
The LUNA Collapse and Crypto Contagion
3AC ranked among the biggest crypto hedge funds in the industry, managing around $18 billion in assets at its peak. However, the firm took on substantial risk, especially concerning LUNA and UST tokens, plowing over $550 million of company funds into the failed operation.
In May 2022, the LUNA/UST stablecoin de-peg triggered margin calls on 3AC’s heavily leveraged positions. These positions were funded using borrowed tokens from the likes of Voyager Digital, BlockFi, Genesis, and others, setting off a catastrophic contagion effect across the crypto industry.
Zhu and Davis were heavily criticized for dodging creditors and investigators, leading many to believe the pair were “on the run.” Zhu later commented that death threats had forced him into hiding, but that didn’t mean he wasn’t in touch with authorities tasked with picking up the pieces of the defunct company.
The consultancy firm Teneo overseeing 3AC’s bankruptcy process stated that the company still owes $3.3 billion to creditors.
On the Flipside
- Zhu was incarcerated in Changi Prison, Singapore, which is described as “a high-rise, high-tech and claustrophobic facility” with prisoners spending 23 hours a day inside their cells, and caning is a common sanction.
- Zhu and Davis co-founded the OPNX exchange while “on the run,” leading to further criticisms around leaving 3AC creditors out to dry.
- A British Virgin Islands Court recently ordered a global asset freeze on the 3AC co-founders to recoup creditors’ funds.
Why This Matters
As the crypto industry continues to reel from 3AC’s collapse, Zhu’s unexpected prison portrayal offers insight into life in a Singapore jail. However, with authorities working overtime to pick up the pieces, 3AC’s creditors are likely unsympathetic toward Zhu’s reflective stance behind bars.
Read about the court order enforcing a global freeze on Zhu and Davis’ assets here:
3AC Co-founders’ Assets Worth $1 Billion Frozen by Court
Find out more on Gemini’s cryptic XRP tweets fueling wild speculation here:
Gemini Stokes XRP Intrigue with Series of Cryptic Tweets
