Su Zhu gets called out by the community as he fires off accusations against DCG

Published at: Jan. 3, 2023

As liquidity issues surround the Digital Currency Group (DCG), Three Arrows Capital (3AC) founder Su Zhu made a Twitter thread containing allegations against DCG and FTX. However, the founder immediately got called out by the crypto community for blaming others and not taking accountability. 

In the thread, Zhu alleged that DCG had a role in the collapse of LUNA, now called Terra Classic (LUNC). Zhu claimed that the venture capital firm conspired with the FTX exchange to attack LUNC and made a profit by doing so. The 3AC founder also said that instead of restructuring from losses due to the 3AC bankruptcy, DCG “magically filled the hole.”

Despite Zhu’s efforts to demonize DCG and FTX, the community believes that he should focus on his own misdeeds.

So it was everyone else’s fault and you take no personal responsibility at all for your actions?

— DeFi Alex (@swaggyAlexyo) January 3, 2023

The Daily Gwei host and Ether bull Anthony Sassano also called out Zhu on Twitter. Sassano employed sarcasm, saying that everyone was behind the 3AC collapse except for Zhu and co-founder Kyle Davis. “They are totally innocent parties who were simply forced to be on the losing side of highly profitable trading strategies,” he wrote. 

Meanwhile, the 3AC bankruptcy process faces difficulties as its founders may be located in Indonesia and the United Arab Emirates, where it may be difficult to enforce court orders. Lawyers who represent liquidators have claimed that the 3AC founders have failed to coordinate with liquidators in the past few months despite agreeing to a communications protocol. 

Related: 3AC subpoenas issued as dispute grows over claims of Terraform dump

On Dec. 2, the legal team for liquidators also called out the 3AC founders for talking to the media and being active on social media while failing to engage with them. The legal team claimed that the founders only had limited discussions with liquidators and frequently changed jurisdictions.

Tags
Ftx
Related Posts
Billionaire investor Bill Ackman says 'crypto is here to stay'
Billionaire investor and hedge fund manager Bill Ackman says he remains bullish about cryptocurrencies, despite the recent collapse of the FTX cryptocurrency exchange and the market turmoil that’s followed it. In a Nov. 20 Twitter thread, the CEO and founder of hedge fund management firm Pershing Square Capital Management said he believes “crypto is here to stay” despite recent challenges, though there’s a need to increase oversight and remove “fraudulent actors” in the space. Bill Ackman is a billionaire American investor most recently calling for the removal of regulatory barriers and easing regulations in New York in order to make …
Adoption / Nov. 21, 2022
FTX's Bankman-Fried to face market manipulation probe, Do Kwon chimes in
United States federal prosecutors have reportedly begun investigating whether the collapse of the Terra ecosystem was in fact triggered by market manipulation tactics by former FTX CEO Sam Bankman-Fried. According to a Dec. 7 report from The New York Times (NYT), the prosecutors — as part of a broader inquiry into FTX’s own collapse — are investigating whether Bankman-Fried’s empire intentionally caused a flood of “sell” orders on Terra’s algorithmic stablecoin TerraClassicUSD, USTC (formerly UST). The sudden increase in UST sell orders were said to make it difficult to match them with corresponding “buy” orders, which in turn forced more …
Regulation / Dec. 8, 2022
Key witness called to testify at Terra parliamentary inquiry is a no-show
The CEO of venture capital firm Hashed and early Terra (LUNC) investor Kim Seo-joon has cited “extreme stress” following the Terra crash as the reason for his no-show at South Korea’s National Assembly's Political Affairs Committee. Seo-joon was one of six people selected to take part in the South Korean parliament’s latest inquiry to better understand the events that led to the infamous $40 billion wipe out of Terra’s cryptocurrencies, according to an Oct. 24 article from the Korea Economic Daily. According to a letter from Seo-joon, he suffered severe mental harm from the following the sudden collapse of LUNC …
Blockchain / Oct. 25, 2022
Former FTX US President lashes out at 'insecure' SBF in 49-part Twitter thread rant
Former FTX US President Brett Harrison has lashed out at Sam Bankman-Fried for manipulating and threatening colleagues who proposed solutions to reorganize FTX US' management structure. Harrison shared his experiences with Bankman-Fried and FTX US on Dec. 14, explaining how he was hired “casually over text” in Mar. 2021 after working together at New York-based trading firm Jane Street for a few years. But six months into Harrison's tenure at FTX US, “cracks began to form” between the two, he said. Despite recalling Bankman-Fried to be a “sensitive and intellectually curious person” at first, Harrison said he saw “total insecurity …
Blockchain / Jan. 15, 2023
CoinDesk could be up for grabs as parent company DCG scrambles for funds
Crypto media outlet CoinDesk is reportedly considering a potential sale as its parent company Digital Currency Group (DCG) looks to strengthen its balance sheet. According to the Wall Street Journal, CoinDesk has sought the help of investment bankers from financial advisory firm Lazard, who are helping the firm weigh options including a full or partial sale. You know, I just realized that Coindesk is for sale. pic.twitter.com/QqmBPOClpu — Charles Hoskinson (@IOHK_Charles) January 19, 2023 DCG has purportedly received multiple offers exceeding $200 million to buy out the media firm over the last few months, which would result in a phenomenal …
Business / Jan. 19, 2023