a stranger to controversy. The company’s rapid rise and subsequent downfall have left many investors and industry experts questioning its practices and the responsibility of its founders.
Su Zhu, the former hedge fund manager and co-founder of AC, has been at the center of this storm. For months, people have been calling for his imprisonment, blaming him for the financial losses suffered by investors. However, in a surprising turn of events, Zhu is now recommending that everyone should spend some time in prison.
In a recently shared clip from an unnamed and unreleased podcast, Zhu expressed his belief that prison can actually be an enjoyable experience. He claimed that his three-month incarceration gave him the opportunity to decompress, read, and even realign his spine. While this statement may seem outrageous to many, it is important to note that Zhu has always been a controversial figure.
AC, under Zhu’s leadership, reportedly owed creditors billions of dollars, which contributed to a contagion event that wiped out trillions in value from retail and institutional investors’ portfolios. In an attempt to evade investigators, Zhu and his partner, Davies, traveled to countries with non-U.S. extradition treaties and refused to cooperate. Despite these actions, Zhu has managed to build a significant following on social media, where attention is highly valued.
During the good times, Zhu was seen as a trading guru, with many looking up to him for guidance. Now, as times have turned bad, people are curious to see if he can bounce back. Some speculate that his recommendation to spend time in prison is a clever marketing tactic, reminding people that he is at the beginning of his redemption arc. Others believe it is an attempt to wash away the negative perception of him never having to work again after the collapse of his billion-dollar fund.
Zhu’s sincerity has always been difficult to gauge. When he predicted a “supercycle” in the value of Bitcoin, it was unclear whether he genuinely believed in the cryptocurrency’s potential or if he was simply trying to create FOMO (fear of missing out) for personal gain. Regardless, the risks he took were with other people’s money, using his influence and popularity to secure loans that eventually led to bankruptcy.
While Singaporean authorities have accused Zhu and Davies of misleading information and evading arrest, they have not been officially charged with financial violations. Some lenders have accused them of fraud and falsifying records to access more capital. However, Zhu and Davies maintain their innocence, arguing that going bankrupt or making bad bets is not a crime.
It is evident that Zhu and Davies were true believers in crypto, using it as a vehicle to make money. Their biggest trades, including betting on staked ETH and buying altcoins, were all based on the belief that crypto was on the verge of mass adoption during the coronavirus crisis.
In hindsight, it is clear that Voyager and BlockFi, who loaned millions of dollars to AC, share some responsibility for the company’s downfall. Voyager, in particular, reportedly lent over half of its loan book to AC, highlighting their greed and lack of due diligence.
The controversy surrounding Zhu and AC serves as a reminder of the risks and uncertainties associated with investing in the crypto market. While some may view Zhu’s recommendation to spend time in prison as a provocative statement, it is crucial to approach such claims with caution and skepticism. Ultimately, the true impact of Zhu’s actions and beliefs on the crypto industry remains to be seen.