Three Arrows Capital Co-Founder Su Zhu Says Digital Currency Group and FTX Conspired to Attack Terra (LUNA)

Three Arrows Capital Co-Founder Su Zhu Says Digital Currency Group and FTX Conspired to Attack Terra (LUNA)

The co-founder of bankrupt crypto hedge fund Three Arrows Capital (3AC) has made several allegations despite his legal scrutiny. Zhu Su claims that the Digital Currency Group (DCG) “conspired with FTX to attack LUNA,” Terra’s native algorithmic stablecoin, which crashed in May 2022. “They suffered significant losses over the summer due to our bankruptcy, as did Babel and other companies involved in GBTC; back in, they could have restructured a callable promissory note from the left pocket to the right pocket, magically filling the hole.

It’s like a kid who loses at poker and says, “I’m fine; my dad is paying you; let me keep playing,” but if your dad is you. Different methods to attack us, and no one asked the hard questions, so Genesis filled the hole. They, like FTX, spent six months taking more deposits while defaulting and waiting for the market to go up.

3AC is reportedly facing legal scrutiny, with the United States Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) investigating the possibility that the company has been in breach by not registering with the agencies and Investors misled about the state of their finances. The disputed company went bankrupt in July. Digital Currency Group is facing liquidity problems after one of its subsidiaries, cryptocurrency lender Genesis, suspended payouts due to bankruptcies that hit the cryptocurrency industry over the past year.

 

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