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“We just believed in infinite growth,” Three Arrows Capital founders reveal what led the fund to bankruptcy

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The founders of Singapore-based cryptocurrency hedge fund Three Arrows Capital (3AC) talked about what led the company to collapse. It all collapsed because of the overconfidence of 3AC’s founders, inspired by years of a bull market (well, they said it was all Ilon Musk’s fault).

In an interview with Bloomberg, Su Zhu and Kyle Davies admitted that they simply believed in infinite growth, which led to a series of bad decisions that should have been avoided at all costs.

Zhu also revealed ties to the infamous Terra project and its mastermind, Do Kwon. The founders of 3AC believed in Terra and ignored the warning signs that preceded its collapse. Ultimately, this blind faith led to a $500 million investment that turned into zero.

However, Terra’s collapse and the fall of cryptocurrency LUNA were not the straws that broke the back of a major hedge fund. The real problems started when bitcoin fell below $20,000 and there was nowhere to get the extra money. If it had been all about LUNA, the project would have held up.

[After LUNA collapsed] we continued to do business as usual. But then, yes, the day came when, you know, bitcoin dropped from $30,000 to $20,000, and it was extremely painful for us. And that was what ended up being kind of the nail in our coffin lid.

Soo Joo and Kyle Davis deny the allegations of taking money out before 3AC went bankrupt, and they also clarified the $50 million yacht purchase that appeared in court documents. Zhu said the yacht was bought more than a year ago and its “money trail” can be easily traced.

The entrepreneurs chose not to disclose their whereabouts, explaining that they had received threats, including physical harm. The founders of 3AC plan to move to Dubai later.

Cryptocurrency

Ripple CEO Says Stablecoins on the Verge of a Trillion-Dollar Boom

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The stablecoin market could potentially balloon nearly tenfold within a few years, according to Ripple CEO Brad Garlinghouse.

Appearing on CNBC’s “Squawk Box” on Wednesday, Garlinghouse highlighted the sector’s momentum and said that many expect stablecoins to reach a combined market capitalization of $1 trillion to $2 trillion, up from around $260 billion today.

The exec added that the current growth rate is “profound,” while explaining that Ripple’s late entry into the stablecoin sector was a result of using stablecoins in its institutional payment flows prior to launching its own USD-backed asset.

BNY Mellon Backs Ripple’s RLUSD

Garlinghouse’s comments came as Ripple announced that the Bank of New York Mellon will now handle the USD cash and Treasury bills that back its RLUSD stablecoin.

Meanwhile, the partnership, which was disclosed on Wednesday, secures RLUSD a reputable banking partner as it scales further. As one of the largest custody banks in the US, BNY Mellon will safeguard and manage the liquidity of the reserves backing every RLUSD issued. It has been tasked with ensuring that holders can redeem the stablecoin for USD on a 1-to-1 basis under standards similar to money-market fund controls.

BNY’s support for RLUSD aligns with its gradual expansion into crypto services since establishing a digital asset unit in 2021 and welcoming institutional crypto clients in 2022. Ripple’s RLUSD, which launched in December 2024 on Ethereum and the XRP Ledger, has grown rapidly within the $260 billion stablecoin market.

RLUSD is designed to align with upcoming bipartisan legislation in the US, the GENIUS Act, which will introduce federal standards for reserve disclosures and backing. The stablecoin industry continues to attract interest from major corporations like Amazon and Walmart, alongside top-tier banks exploring entry into this expanding ecosystem.

J.P. Morgan Throws Cold Water on Hype

Apart from Ripple’s outlook, Standard Chartered anticipates the stablecoin sector could expand to $2 trillion by 2028, while Bernstein expects supply to climb toward $4 trillion within ten years.

J.P. Morgan, however, remains skeptical. The investment banking behemoth estimated growth to just $500 billion by 2028, and argued that trillion-dollar expectations are premature amid the lack of widespread use of stablecoins.

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Bitcoin Legend Max Keiser Predicts BTC to Hit $220K in 2025

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Veteran Bitcoin (BTC) evangelist Max Keiser has reignited bullish sentiment in the crypto community with a renewed call that the OG cryptocurrency will reach $220,000 before the end of 2025.

In a series of posts on X, he stressed that his forecast, once seen as outlandish, now appears increasingly plausible, especially following BTC’s new all-time high of $112,152, reached just hours earlier.

$220K BTC Call Gains New Momentum

Keiser first floated his $220,000 prediction in December 2022 during an interview with Daniela Cambone. At the time, the digital asset market was caught in a debilitating “crypto winter,” with its overall value plummeting from $3 trillion to under $1 trillion and BTC sinking to five-digit lows.

The former broadcaster is now circling back to the projection, pointing out that the price of Bitcoin has increased 700% since his sit-down with Cambone.

“Bitcoin up 700% since this interview 2 years ago (and $220,000 in 2025 looks likely),” Keiser wrote on X.

While skeptics challenged his thesis two years ago, BTC’s current price is lending it credibility. “$220,000 in 2025,” he reiterated in another post.

The number one cryptocurrency recently chalked up a new all-time high, after initially surging past $109,000 following comments by U.S. President Donald Trump on July 9, demanding the Federal Reserve execute the “biggest interest rate cut in history.”

Analysts at the Kobeissi Letter warned that such an unprecedented cut, while potentially saving $174 billion in near-term interest and slashing mortgage rates, could supercharge inflation, possibly benefiting riskier assets like Bitcoin.

This macro bombshell shattered weeks of consolidation between $105,000 and $110,000, decisively propelling BTC past its old peak. Market intelligence firm Santiment pinpointed the breakout’s contrarian nature, noting it occurred precisely when “many retailers had been dropping out due to boredom or disbelief,” a classic signal of smart money accumulation preceding major rallies.

Keiser Holds Back on Timing to Avoid Investor ‘Fear’

At the time of this writing, Bitcoin was trading near $111,090, and showing modest momentum, with gains of 2.1% in the last 24 hours and 1.8% over the past week.

While Keiser’s $220,000 target remains highly ambitious, his conviction has been constant through the asset’s ups and downs. However, he has intriguingly hinted at withholding the precise timing of his prediction, suggesting the full picture might unsettle investors.

“I pause before giving exact timing of price targets not to scare people,” Keiser admitted in one post, adding more emphatically in another, “If I gave you both the price and date most of you would be scared.”

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XRP Prices Hit 7-Week Peak as This Crucial Metric Suggests Further Gains

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There’s an evident uptick in the cryptocurrency market, especially when it comes to altcoins, as many have marked notable gains of up to 5% on a 24-hour scale.

Ripple’s native cross-border token is among the examples, as the asset jumped to $2.4 for the first time since late May today.

XRPUSD. Source: TradingView
XRPUSD. Source: TradingView

One of the possible reasons behind the price pumps in the past few hours could be linked to US President Trump’s call for a massive interest rate cut by the Federal Reserve. After all, riskier assets like crypto should benefit from such a monetary move.

XRP is among the top performers on a daily scale, climbing by nearly 4% and reaching the aforementioned seven-week peak. Moreover, the fourth-largest cryptocurrency has gained over 25% since its monthly bottom at the end of June at $1.9 during the Israel-Iran war.

According to data shared by Santiment, Ripple’s price pump could also be attributed to large investors accumulating substantial portions of its supply. In fact, the number of wallets holding at least a million XRP reached a new all-time high yesterday at 2,743. Today, the number is just shy of that peak, Santiment said.

The analytics platform believes this shows growing confidence in XRP’s future. Additionally, smaller (retail) investors could follow suit by seeing this accumulation pattern by the so-called ‘smart money,’ which might result in further gains for Ripple’s token.

The XRP Army has certainly been vocal about its bullish belief in the asset’s price trajectory, and some analysts have indicated that reclaiming the $2.38 resistance could result in a quick 12% surge to $2.60.

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