Arrest of Co-founder from Three Arrows Capital in Singapore

In the world of cryptocurrency, the past few months have been marked by a series of dramatic events involving some of the industry's most prominent figures.

The collapse of Three Arrows Capital (3AC), once one of the world's largest crypto hedge funds, sent shockwaves through the industry. Co-founder Su Zhu and his partner Kyle Davies found themselves in hot water when it was revealed they were trying to raise funds for a new venture, OPNX, in January.

Prior to its downfall, 3AC owed its creditors approximately $3.5 billion, with $2 billion owed solely to Genesis. Crypto trading firm Genesis and lender BlockFi also faced losses due to their exposure to 3AC.

The launch of OPNX, a claims trading exchange for bankrupt crypto firms, was reported by The Block in January. However, the venture faced a setback when Zhu was arrested at Singapore's Changi Airport in March. His arrest was followed by a prison sentence of four months due to failure to cooperate with 3AC's liquidation investigation. Davies received the same sentence.

The arrest of Zhu led to a nosedive in the value of OPNX's native token, OX. A sell-off of $1 million worth of OX tokens further contributed to the value drop, a report by BeInCrypto confirmed.

3AC's downfall was not the only significant loss the crypto industry faced. The collapse of Terra's ecosystem in May 2022 resulted in significant losses for 3AC. Terra founder Do Kwon was arrested in March in Montenegro.

The bankruptcy of Voyager Digital has been attributed to its exposure to 3AC, which defaulted on a loan worth more than $650 million.

In other news, the criminal trial against Celsius founder and former CEO Alex Mashinsky is set to start on Tuesday. Last year, FTX founder and former CEO Sam Bankman-Fried was also arrested.

Through these events, the cryptocurrency industry continues to evolve, presenting both challenges and opportunities for those involved. The liquidators managing the bankruptcy proceedings of 3AC aim to extract at least $1 billion from Zhu and Davies. As the industry navigates these turbulent waters, it remains to be seen how these events will shape its future.