Are these crypto CEOs some of the worst people? Find out more in this video!
Subscribe to Pablito’s Way below:
Videos produced by Virtuepatch.com
New to Pablito’s Way? Start here!💯
Check out some more of our favorite videos below:
The Fabulous Millionaire Life of Pastor Joel Osteen⛪
The Untold Truth About the Escape From Alcatraz⛏️
Rappers Who Went Broke with Dumb Decisions💸
Follow me on Instagram!
Maybe he had a way with computers, but with his words…not so much. CEO Do Kwon became known for the way he conducted himself in interviews. He said such things like “I don’t argue with the poor” after receiving criticism on his cryptocurrencies.
But before he was called the South Korean Elizabeth Holmes, he was the South Korean Elon Musk. In April 2022, the price of Luna reached a whopping $119, and became the first Korean currency to make it into the top ten crypto markets in the world.
A few days later, TerraUSD fell from its one to one U.S dollar ratio to 0.26 Terra USD to one U.S. dollar. The crumbling crypto market urged investors to convert their TerraUSD to Kwon’s other coin, Luna, which in turn fell 97% that day to a market value of nearly $0.
After the crash of TerraUSD and Luna, some people called it a Ponzi scheme similar to what happened to the Lehman Brothers before the 2008 recession. The United States Securities and Exchange Commission issued a subpoena to Terraform Labs and Kwon in 2021, with a special interest in the company’s mirror protocol, which claimed to be designed to mirror actual stocks.
Three Arrows Capital
The effect of Do Kwon’s company affected more than just independent investors. It affected hedge funds like Three Arrows Capital, a Singaporean cryptocurrency hedge fund founded in 2012 by Kyle Davies and Su Zhu.
Zhu, cofounder, director, CEO, and CIO of 3AC was living the high life while 3AC rode the wave of success. He used his earnings to buy properties all over the world including 3 bungalows in Singapore from 2019 to 2021.
In the first half of 2022, cryptocurrencies experienced major decline. Most tokens lost over 50% of their original value. After TerraUSD and Luna crashed to a value of near zero, 3AC owed debts nearing $3 billion.
Unfortunately for founders Su Zhu and Kyle Davies, this was very bad timing. Instead of paying creditors back, Zhu and Davies just put a deposit down on a $50 million yacht. It weighed 500 tons and was 171 feet long with five decks and a glass bottom pool.