Three Arrows Capital

Su Zhu and Kyle Davies ran Three Arrows Capital, one of crypto’s most respected hedge funds. Behind the public confidence was $3.5 billion in leveraged bets and no risk management. When Terra collapsed, 3AC’s losses cascaded through every major lender in the industry — BlockFi, Voyager, Celsius, Genesis — like dominoes. Trustless maps the contagion chain: who lent to whom, who lied about their exposure, and how hidden leverage turned one fund’s collapse into an industry-wide credit crisis.