3AC Founder Accuses FTX And DCG Of Conspiring Towards Terra Luna Collapse
Three Arrows Capital (3AC) founder Su Zhu has thrown accusations on FTX and Digital Currency Group (DCG) of conspiring to put 3AC in its current predicament, and also orchestrating the Luna crash.
Terra Luna Crash Affecting 3AC
With a slew of hacks, collapses, and insolvencies to name just a few, last year was the most traumatic year for the cryptocurrency industry.
With the Terra Luna Crash in May 2022, a string of terrible crashes began to emerge. Within a week of it occurring, this crash alone wiped out investors’ investments worth $40 Billion and threw the crypto industry into chaos.
One of the world’s largest cryptocurrency hedge funds, Three Arrows Capital, was also impacted by this crash. Su Zhu, the founder, has publicly accused Digital Currency Group of being responsible for Terra Luna’s demise.
Su Zhu accused FTX and Digital Currency Group of working together to bring down Terra Luna in a tweet he made on Twitter.
Due to 3AC’s insolvency following the Terra Luna catastrophe, several companies affiliated with 3AC also experienced a liquidity crunch.
According to the founder of 3AC, DCG could have cooperated and helped during their liquidity problem, but instead, DCG departed the scene and provided no assistance.
DCG is presently dealing with a problem of its own. The co-founder of Gemini, Cameron Winklevoss, called out DCG on January 2nd for owing Genesis Global Capital a debt of $1.7 billion, however DCG denied all accusations.
Genesis Global experienced a liquidity crisis when FTX collapsed, but many believe Genesis had been dealing with these issues since the Terra Luna disaster in May.
Su Zhu Throws Conspiracy Accusations
Su Zhu is convinced that the founders of DCG and FTX used the failure of Terra Luna and 3AC as an opening to deceive the crypto community with false information for months.
Su Zhu went on to reveal information on both corporations. He claimed that the DCG value is zero and attacked FTX creditors, saying that they have a case for fraudulent acts on Alameda capital returns to the lending firm Genesis Global.
It is particularly conceivable that Genesis Global could go bankrupt in the coming months, and creditors are reportedly relying on DCG founder, Barry Silbert to aid them in withdrawing their funds in the simplest way possible out of the lending firm.
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