Failed 2022
Three Arrows Capital
Concentrated, leveraged bets in volatile markets with borrowed funds create cascading systemic risk.
Founded → Closed
2012 → 2022
Funding Raised
$0 (hedge fund)
Industry
Crypto/Hedge Fund
Country
Singapore
IdeaProof AI Failure Score
78/100
Market Fit Risk
55
Burn Rate Risk
50
Founder Risk
85
Full Analysis
Three Arrows Capital (3AC) was a crypto hedge fund managing over $10B at its peak. When Terra collapsed, 3AC couldn't meet margin calls and defaulted on $3.5B in loans from multiple lenders. The 3AC collapse triggered a cascade of failures across the crypto lending industry.
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