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Lionel Laurent

When Crypto’s Own Hedge Fund Geniuses Failed

A lot of smart investors seem to have forgotten that prices can go down — and keep going down.

It only looks like money.

It only looks like money.

Photographer: NurPhoto/NurPhoto

Cryptocurrencies were supposed to teach traditional financiers a thing or two about how to avoid collapses and crises. Yet it feels like we’re simply repeating history. Specifically, the messy hedge-fund humiliation captured in “When Genius Failed.”

After Terra and Luna’s $60 billion stablecoin  collapse and the freeze of withdrawals at crypto-lending platform Celsius, trading firm Three Arrows Capital now appears to be in trouble. The fund is liquidating its holdings amid plummeting prices, and an ominous tweet from co-founder Zhu Su about “communicating with relevant parties” is stirring fears of something potentially more fatal.