Will the crypto always give scammers a second chance? Su Zhu owed billions and was given a light sentence, and the Xiaoyao crypto talked about "pardon"

Here is the English translation of the text, with the specified terms translated as requested: The rise and collapse of the crypto world often come quickly and fiercely, and the story of Three Arrows Capital (3AC) is undoubtedly one of the most dramatic cases. Overnight, 3AC founders Su Zhu and Kyle Davies went from being legendary crypto investors to being the heads of a bankrupt company that everyone was after. However, not only did they manage to avoid major legal punishment, they even tried to reshape their image and return to the market. On 3/14, Su Zhu even [stated] that he wonders why Do Kwon is not pardoned, and why so much blame is placed on these crypto founders, which hinders the industry, leaving people stunned. Will this "rebirth plan" really succeed? Or is it just another scam? Let's see how this "fallen star" of the crypto world seeks opportunities in the gaps between the law and public opinion.

Su Zhu Defends Do Kwon, Says Crypto Industry Should Not "Find a Scapegoat"

Su Zhu today issued a [statement], expressing his bewilderment at the criticism of Terraform Labs founder Do Kwon. He said that although he suffered heavy losses in the Luna incident, he is surprised that more people are not calling for Do Kwon's pardon. Su Zhu pointed out that Luna was one of the largest protocols in crypto history, and at the time, almost all mainstream exchanges offered UST savings vaults, and major venture capital firms were also actively involved. Furthermore, the Luna mechanism was publicly transparent and had been widely discussed, rather than a black box operation controlled by a single person. He admitted that Do Kwon was indeed too arrogant at the peak, and should have humbly accepted criticism and suggestions, but he emphasized that if the industry chooses to make Do Kwon a scapegoat, it will seriously affect the willingness of excellent founders to enter the crypto field in the future. He believes that every industry has similar failure cases, but in the crypto field, founders often have to bear additional risks - even if the technology is transparent, they may still be held fully accountable for market collapses. Finally, Su Zhu even compared Do Kwon's predicament to the situation where the industry decided to send Vitalik Buterin to prison after the Ethereum DAO hack, which would cause irreversible damage to the entire ecosystem. Netizens have mixed reactions to his remarks, with some not agreeing with his use of Vitalik as an example, while others encourage him. Next, let's look at an Intelligenser [report] on Su Zhu's rapid rebirth after his imprisonment, and think about whether these actions are trial and error or real crimes.

Su Zhu Jailed, Kyle Davies Disappeared: Can Legal Responsibility Catch Up with Them?

In late September 2023, 15 months after the 3AC collapse, Su Zhu was arrested at Singapore's Changi Airport. He had originally planned to fly to Hong Kong to continue preparing new Bit business, but was sentenced to four months in prison for failing to cooperate with the 3AC bankruptcy liquidation investigation, and was sent directly to prison from the airport. At the same time, his partner Kyle Davies was also sentenced to the same prison term, but has not been arrested to this day. The liquidation company Teneo is still tracking Kyle Davies' whereabouts, and it is reported that he has appeared in Portugal, Bali, Spain and other places, and even some people have seen him in a winery and a surfing spot, but he has consistently refused to provide his specific location and cooperate with the investigation. For many crypto observers, Su Zhu and Kyle Davies' imprisonment seemed inevitable, as 3AC claimed to manage $5 billion to $10 billion in assets at its peak, but ultimately owed tens of billions of dollars in debt. However, compared to other crypto scandal figures like FTX founder Sam Bankman-Fried and Luna founder Do Kwon, Su Zhu's crimes are relatively minor, and he was even allowed to wear an electronic ankle monitor and be placed under house arrest just two months later, and was released early in December 2023.

"Prison life made me stronger!" Su Zhu's "Cultivation Theory"

After being released from prison, Su Zhu began to speak out prominently on social media, trying to create an image of "rebirth" for himself. In a live broadcast, he said that prison life not only made his thoughts clearer, but also improved his eyesight and basketball skills.

"This was actually a very pleasant experience, not to the point of recommending it, but if everyone could experience it once, it should be a good thing."

"Everything in prison made me feel connected to my ancestors, I slept best there, woke up at 5:30 in the morning, and could do countless push-ups."

He even claimed that during his imprisonment, he had read the Bible and the Quran in their entirety, and believed that this experience had led to his "spiritual growth", as if he had packaged his imprisonment as a cultivation journey. However, the outside world generally remains skeptical of this claim, believing that it is just a public relations strategy to downplay his own responsibility.

A new "crypto adventure": from OPNX to OX.Fun

Even before the legal pressure was completely lifted, Su Zhu and Kyle Davies quickly immersed themselves in a new business. They collaborated with CoinFLEX founder Mark Lamb to launch a trading platform called OPNX, which was specifically designed to trade the debts of bankrupt crypto companies.

This plan seemed reasonable at first glance, as the bankruptcies of companies like 3AC and FTX made it difficult for many creditors to recover their funds, but OPNX's business model was highly controversial. For example, they paid themselves a monthly salary of $25,000 from CoinFLEX's bankruptcy funds, and used the company's funds to pay over $200,000 in fines.

Furthermore, an insider revealed that Su Zhu was indifferent to helping the creditors, even once saying: "No one really cares about these creditors." This statement further fueled suspicions that their real goal was still to extract the last drop of value from the market.

However, OPNX's fate was the same as 3AC's, and it soon announced its closure. In early February 2024, the exchange suddenly issued an announcement requiring users to withdraw their funds immediately, signaling the failure of this project.

But this did not dampen Su Zhu and Kyle Davies' entrepreneurial enthusiasm. They quickly turned to a new project: OX.Fun, a trading platform with a "crypto gamification" concept. The platform's tokens include $OX, MILK, and Autism, with seemingly random names and an even more confusing concept.

Does the crypto market always give scammers a second chance?

Surprisingly, despite the collapse of 3AC causing massive losses for countless investors, Su Zhu and Kyle Davies were still able to find supporters in the market. For example, Bitcoin Magazine CEO David Bailey, who was once a critic of 3AC, later became an investor in OX.Fun.

This reflects a key characteristic of the crypto currency market: short memory and strong belief. As Su Zhu said, the essence of crypto is a belief game, where people believe in the value of a project, and it can create wealth. Therefore, even though 3AC's past is well-known, there are still people willing to bet on their next "big plan".

But the reality is cruel. Su Zhu and Kyle Davies' assets are still facing legal pursuit. The Singapore court has frozen their and Kyle Davies' wife Kelly Chen's assets, and filed claims against the two totaling up to $1.1 billion. Additionally, the unpaid $30 million yacht payment has also become another legal dispute.

Will the 3AC founders be able to truly turn things around, or is this just another "crypto scam"? The final verdict will depend on the market and the judiciary.