Su Zhu, the founder of Three Arrows Capital (3AC), recently accused Digital Currency Group (DCG) and FTX of being involved in the collapse of Luna Classic (LUNC) and profiting from the event. Zhu also claimed that DCG did not take responsibility for the losses suffered by 3AC and instead “magically filled the hole.”
These allegations were met with skepticism and criticism from the crypto community, with some accusing Zhu of not taking responsibility himself and instead blaming others. The liquidity crisis faced by DCG has also raised concerns about the stability of the cryptocurrency market. It remains to be seen how these allegations will be addressed and the consequences for those involved.
Anthony Sassano, the host of The Daily Gwei and an advocate for Ether, also took to Twitter to criticize Zhu and his co-founder Kyle Davis. Sassano sarcastically remarked that everyone was behind the 3AC failure except for Zhu and Davis, insinuating that they were not innocent parties.
Sassano tweeted, “They are innocent parties who were simply forced to be on the losing side of highly profitable trading strategies.”
It is unclear at this time what specifically led to the collapse of 3AC, but Sassano did point fingers at Zhu and Davis for their involvement.
As the bankruptcy proceedings for 3AC continue, various challenges have arisen. One major obstacle is that the company’s founders are believed to reside in Indonesia and the United Arab Emirates, making it difficult for court orders to be enforced.
This has reportedly caused issues for the liquidators handling the case, as they have allegedly been unable to get in touch with the founders despite agreeing to a plan for communication. Additionally, some attorneys representing the liquidators have expressed frustration with the lack of cooperation from the 3AC founders in recent months.
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