Singaporean authorities apprehended the co-founder of Three Arrows Capital.

In the ever-evolving world of cryptocurrencies, the bankruptcy of Voyager Digital has sent shockwaves through the industry, with the root cause being traced back to its exposure to Three Arrows Capital (3AC), a once-prominent crypto hedge fund that defaulted on a loan worth over $650 million.

3AC's downfall, which has left it owing approximately $3.5 billion to its creditors, has been attributed to a series of setbacks. One of the most significant was the collapse of the Terra ecosystem in May 2022, which resulted in substantial losses for 3AC. The court order for the liquidation of 3AC was issued on Sept. 25.

The co-founder of 3AC, Su Zhu, was arrested at Singapore's Changi Airport on Friday. His arrest follows the sentencing of another co-founder, Kyle Davies, to four months in prison by a Singapore court due to failure to comply with the liquidation investigation of 3AC. However, there is currently no information available about Davies' current whereabouts or arrest status.

The fall of 3AC has had far-reaching consequences, with crypto trading firm Genesis and lender BlockFi also facing losses due to their exposure to the hedge fund. The collapse of 3AC has also impacted the value of OPNX's native token, OX. In January, it was revealed that a group, including the 3AC duo, was trying to raise $25 million to launch OPNX, an exchange for trading claims of bankrupt crypto firms. However, following Zhu's arrest, the value of OX plummeted.

A sell-off of $1 million worth of OX tokens caused the value of the token to nosedive further. The criminal trial against Celsius founder and former CEO Alex Mashinsky is set to start on Tuesday, adding another layer of uncertainty to the crypto market.

Prior to its collapse, 3AC was one of the world's largest crypto hedge funds. Its downfall serves as a stark reminder of the risks associated with the crypto market and the importance of due diligence. Despite the challenges, the industry continues to evolve, with new platforms and initiatives emerging, such as OPNX, launched by Zhu and Davies this spring.

It is important to note that no information about purchasing licensing rights was mentioned in the provided paragraphs. This article aims to provide factual information about the events and their impact on the crypto market, without adding opinions or unrelated information.