From $10 Billion in AUM to Quanto's Resurgence: Su Zhu's Controversial Return to DeFi

Su Zhu, the founder of the once-formidable Three Arrows Capital (3AC), has re-emerged in the cryptocurrency sector with a high-profile involvement in Quanto, a Solana-based perpetual derivatives exchange. The QTO token has experienced explosive growth, surging over 700% in recent weeks and establishing a circulating market capitalization of approximately $30 million. This trajectory marks a striking contrast to his earlier downfall, when the $10 billion asset management firm collapsed in 2022, cementing Su Zhu’s dramatic fall from grace and subsequent legal troubles.

The Fall and the Reckoning

The 2022 collapse of Three Arrows Capital sent shockwaves through the cryptocurrency industry. Co-founded with Kyle Davies, the firm’s implosion following the Terra/Luna ecosystem crash generated over $3.5 billion in creditor claims. The liquidation order issued by a British Virgin Islands court in June 2022 was followed by regulatory action from Singapore’s Monetary Authority, which sanctioned 3AC for exceeding asset management thresholds, misrepresenting information, and failing to disclose directorship changes.

Su Zhu and Davies became the subjects of intense scrutiny when they disappeared from creditor oversight, eventually fleeing to Southeast Asia. In September 2023, Su Zhu’s arrest at Singapore’s Changi Airport marked the culmination of this chapter—he was detained attempting to exit the country using fraudulent travel documents and subsequently served a four-month prison sentence for violating a court commitment order and obstructing the liquidation process.

What followed was an unexpected narrative twist. Su Zhu’s subsequent public commentary portrayed his incarceration in remarkably positive terms, describing the experience as therapeutically beneficial, citing the structured environment, physical wellness focus, and disconnection from digital distractions as personally restorative. Such characterization raised eyebrows across the industry, adding another layer to an already complex personal story.

Quanto: Building on Derivative Trading Infrastructure

Quanto represents a recalibration of earlier ventures into decentralized perpetual futures trading. Launching on Solana in September 2025, the platform enables leveraged perpetual contract trading with support for diverse collateral types—Bitcoin, Ethereum, alternative tokens, non-fungible assets, and liquidity provider positions. The platform supports up to 100x leverage, targeting traders seeking enhanced capital efficiency through its QLP mechanism designed for micro-cap asset trading.

Su Zhu’s formal announcement of his leadership role in March 2025 emphasized the need for strengthened operational oversight—a pointed reference to lessons from 3AC’s trajectory. The platform’s technical architecture draws inspiration from user-centric design principles emphasized in contemporary trading applications, prioritizing transaction velocity, market depth, and accessibility.

Bifurcated Community Perception

The announcement of Su Zhu’s involvement in Quanto triggered polarized responses within the community. Skeptics immediately flagged reputational risk, associating the project with historical failures and raising concerns about operational integrity. This contingent views any initiative bearing Su Zhu’s involvement as inherently suspect, citing the magnitude of the 3AC collapse as evidence of fundamental mismanagement.

Conversely, project supporters argue for organizational separation and operational reforms. They emphasize that structural management changes and risk mitigation protocols—including global position limits and systematic token burn initiatives (exceeding 29 million QTO tokens eliminated since launch)—represent meaningful departures from prior operational frameworks. Revenue-directed buyback commitments are presented as mechanisms for sustainable value accrual.

This divided assessment reflects a broader challenge: determining whether operational reforms constitute genuine structural improvement or tactical reputation management.

Forward Trajectory and Unresolved Tensions

Su Zhu’s reengagement with the industry extends beyond Quanto, encompassing parallel ventures aimed at capitalizing on market dysfunction—specifically, intermediary services for creditors of defunct cryptocurrency firms. Concurrent funding achievements, including recent capital raises, signal continued investor appetite for his involvement despite regulatory and legal complications.

However, substantial headwinds persist. Liquidators pursuing 3AC continue seeking recovery of approximately $1.1 billion in assets, with international asset freeze orders in effect. The unresolved financial obligations create an ongoing cloud around Su Zhu’s operational capacity and financial positioning. These outstanding liabilities directly impact assessments of his net worth and broader credibility.

Whether Quanto’s market performance validates Su Zhu’s operational evolution or replicates prior institutional failures remains an open question. The project’s trajectory will serve as a measurable indicator of market confidence in his current leadership approach and organizational structure.

This analysis is provided for informational purposes and does not constitute investment guidance.