Three Arrows Capital Founder Says FTX Collapse Set the Industry Back Years

The crypto industry is still reeling from the collapse of FTX, and now Zhu Su, co-founder of Three Arrows Capital, has weighed in on the damage. In a recent interview in Abu Dhabi, Su Zhu stated, "Some industry leaders said that the collapse of FTX set the industry back five years, but I think it\'s more…" suggesting the impact could be even more profound than initially estimated.

The interview comes as Three Arrows Capital co-founder Su Zhu looks like he may be attempting a comeback amid the fallout over FTX and Sam Bankman-Fried. The timing is notable, seen by some as the crypto world continues to grapple with the repercussions of FTX\'s downfall. The failure of FTX, once a leading crypto exchange, has shaken investor confidence and raised serious questions about regulatory oversight within the digital asset space.

The context of Zhu Su\'s comments is crucial, given that Three Arrows Capital (3AC) filed for bankruptcy in July as a result of getting caught up in the collapse of the Terra ecosystem. Both the hedge fund’s founders Kyle Davies and Zhu Su have faced scrutiny since then. Therefore, his perspective on the FTX collapse carries significant weight, though it\'s viewed through the lens of his own company\'s failure.

While the exact timeframe of the setback remains debatable, there\'s a general consensus that the FTX collapse has inflicted substantial damage on the crypto industry. Whether it\'s five years, as some believe, or something more, the road to recovery will be long and challenging. The industry must address issues of transparency, risk management, and regulation to rebuild trust and attract new investment. The views of figures like the Three Arrows Capital founder highlight the ongoing debate about the future of crypto in the wake of these significant events.