Zhu Su, co-founder of bankrupt firm Three Arrows Capital, took to Twitter on Jan. 3 to claim that Digital Currency Group (DCG) and FTX conspired to attack Terra LUNA and stake Ethereum (stETH). thread.
The hedge fund co-founder said this was made possible by the close relationship between Sam Bankman-Fried and DCG CEO Barry Silbert. Zhu Su said SBF, a director of his troubled DCG subsidiary Genesis, later granted his first FTT-backed loan.
Over the past year, Genesis received billions of FTT tokens from Alameda Research and FTX, both of which collapsed.
Zhu added that DCG has suffered significant losses due to the bankruptcy of companies involved in its Grayscale Bitcoin Trust (GBTC). However, instead of restructuring the business, DCG adopted a misdirected tactic that allowed it to continue operating during the insolvency in the hope that the market would recover.
Zhu said:
“[DCG] I created a left pocket right pocket callable promissory note that magically fills the hole. It’s like a kid losing poker and saying, “I’m fine. Dad will pay me, let me keep playing.”
“DCG is worth 0,” said the co-founder of a bankrupt hedge fund. He added that there have been instances of FTX creditors fraudulently transferring Alameda’s capital returns to Genesis.
“Genesis’ creditors are demanding that they go bankrupt anyway and pay the remaining dcg assets back to Barry in an easy way, rather than waiting for DOJ criminal proceedings and paying damages anyway. There is a possibility that “
