Su Zhu, founder of the bankrupt Three Arrows Capital (3AC), claimed that Digital Currency Group (DCG) and FTX were manipulating the crypto market.
The bad scenarios that marked the crypto money market last year started to move into the new year. In 2022, when the bear trend was intense, many collapse scenarios emerged. In particular, the Terra crisis and the FTX bankruptcy were among the most important events of the last year. Su Zhu, founder of bankrupt crypto startup Three Arrows Capital, has made striking claims about the Luna collapse and 3AC bankruptcy. Zhu said that FTX and DCG damaged the market by manipulation.
3AC Founder Bombs FTX and DCG!
Su Zhu, founder of Three Arrows Capital (3AC), claimed that Digital Currency Group (DCG) conspired with FTX to bring Luna down.
Zhu stated that these two organizations attacked steth and Luna during the summer months. Making a series of posts on Twitter, Zhu drew attention to the fact that FTX and DCG made a lot of money in the Terra crisis.
Here's rough summary of dcg situation
1) they conspired w FTX to attack Luna and steth and made a fair bit doing so
2) they took substantial losses in the summer from our bankruptcy as well as Babel, and other firms involved in gbtc
3) they could've calmly restructured then
— Zhu Su 朱溯 (@zhusu) January 3, 2023
Zhu stated that the duo suffered a loss with the bankruptcy of organizations such as 3AC and Babel in the later process. However, according to Zhu, the damaged FTX and DCG did not choose to go to the restructuring. Instead, they tried to get through the day with client assets and various promissory notes.
The founder of 3AC stated that FTX and DCG had been misdirecting for months for their own interests. Also, Zhu asked how Genesis was filling up the damage it had done in the previous period.
According to Zhu, after FTX’s bankruptcy, DCG will also go bankrupt. Troubled times for DCG’s subsidiary Genesis will have creditors knocking on the door.