The crypto market took over a decade, millions of both experienced and amateur investors, and a few super annoying Super Bowl ads to build. But according to a new report from New York Magazine, it may have taken just two of the skeeziest cryptbros around to bring the industry to its knees, both of whom are now believed to be on the run.
Who, you ask, might these lowlives be? Su Zhu and Kyle Davies, according to the accusations, the still-missing founders of imploded crypto hedge fund Three Arrow Capital (3AC), which filed for bankruptcy last month. The pair — who are believed to still be on the lam, sadly without their new, stupidly-titled megayacht — over-borrowed and over-promised, all the while sweeping insolvency under the rug. When the project finally collapsed, so did those who lent them millions and even billions of dollars — likely resulting in the market crash that caused a full trillion dollars to simply evaporate.
“I suspect they might be 80 percent of the total original contagion,” Sam Bankman-Fried, CEO of crypto exchange FTX, told NY Mag, referring to Three Arrow’s alleged responsibility for the broader market crash. “They weren’t the only people who blew out, but they did it way bigger than anyone else did. And they had way more trust from the ecosystem prior to that.”
As NY Mag details, 3AC’s success was built on two of the flimsiest things around: social media influence and heavy borrowing. Zhu especially amassed a vast following on Twitter, where he…
