Three Arrows Capital (3AC)

admin 9 min read

This famous Singaporean crypto hedge fund used to borrow thousands of Bitcoins from other platforms and lenders to take on aggressive leverage.

Three Arrows Capital (3AC)

Launch
2012
Death / Exploit
June 2022
Total Loss
$3.5 Billion

After the Terra (Luna) crash, when they lacked the funds to meet margin calls, their collapse triggered a domino effect across the entire crypto lending market—destroying companies like Celsius, Voyager, and Genesis in the process.

Lesson

Yield products carry hidden institutional risks: Depositing your Bitcoin into platforms that lend to aggressive hedge funds exposes your capital to untracked, highly speculative liquidation risks.

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FAILED STRATEGY
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Lesson: Position sizing is everything — a strategy that "always eventually wins" can still ruin you on the way there.
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