3AC founder says DCG and FTX helped cause Terra collapse

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3AC founder says DCG and FTX helped cause Terra collapse

In a recent Twitter thread, Zhu Su claimed DCG and FTX directly fueled the collapse of Terra, and that they could have helped Terra and 3AC peacefully restructure.

3AC founder says DCG helped Terra implode

3AC founder Zhu Su has publicly accused Digital Currency Group {DCG}, the parent company of Grayscale Investments and Genesis Trading, and FTX of being responsible for Terra’s demise. 

Zhu also believes the largest cryptocurrency hedge fund in the world, Three Arrows Capital {3AC}, collapsed right away as a result of the Terra contagion.

In his most recent Twitter thread, Zhu Su claims that FTX and DCG planned to bring down LUNA and STETH. Following the Terra collapse, 3AC went bankrupt, causing significant losses for DCG and FTX. With the collapse of Babel and other companies participating in GBTC, the losses were heavier for 3AC.

In the thread, the 3AC founder continues by saying that DCG might have assisted them in the reorganization process.

As a substitute, they created a left pocket, right pocket callable promissory note that, somehow, covered the gap. This is comparable to a young person losing at poker and responding, “I’m alright, my dad will pay you, let me keep playing,” Zhu Su said.

A look at Genesis and DCG

As is well known, the demise of FTX has resulted in severe liquidity difficulty for Genesis Global, a division of DCG that lends money for cryptocurrencies. 

“Dcg value is 0, criminal fraud, and FX creditors also have a claim for fraudulent conveyance on Alameda capital returns to Genesis 8, the statement reads. Most OGs are aware of the strong relationship that Barry and SBF have had since the beginning (SBF is a member of Genesis and provided him with his first loan backed by the FTTF).”

Zhu Su, 3AC founder.

Zhu claims that DCG and FTX utilized the demise of 3AC as a chance to “misdirect” the cryptocurrency community for months and employed several techniques to attack them. Genesis filled the holding in this way by accepting deposits for six months after the Terra collapse and betting that the markets would recover.

Do Kwon made similar allegations last month

According to Zhu Su, Genesis will probably declare bankruptcy in the near future. Instead of going via the DoJ, the creditors are waiting for Barry Silbert to assist them in easily cashing out. Zhu Su is not the first to accuse DCG of playing a role in the collapse of Terra. Do Kwon, the founder of Terra, also made such comments last month.

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Julius Mutunkei

Julius is a blockchain reporter skilled at synthesizing all crypto-related information to make articulate texts easy for anyone to grasp. With a beginner's level certificate in Financial Analysis, Julius can read, interpret and report crypto findings to help investors exercise the best judgment in their decision-making process. When he is not caught up in the crypto frenzy, Julius likes playing a game of FIFA with his online buddies.