Cryptocurrency

3AC co-founder Kyle Davies says ‘we’re looking forward to justice’

talk CNBC Regarding the collapse of FTX, Three Arrow Capital co-founder Kyle Davies downplayed the bankrupt exchange:

“Time will reveal the truth and I look forward to justice being served.”

FTX filed for bankruptcy on Nov. 11, draining the exchange’s liquidity reserves. The exact details of the company’s financial situation are unknown at this time.

but, financial times The day before it filed for bankruptcy, it claimed $900 million in liquid assets against $9 billion in liabilities.

With billions of dollars drained, the entire episode hit the industry hard with regulators and regulators. VCsCompanies such as Sequoia Capital, Softbank and Tiger Global have come under fire for not doing enough to prevent things from escalating to this stage.

3AC was heavily exposed to Terra

Questioned for not publicly warning about FTX before, Davis hit back, saying 3AC “mentioned it many times.” “No one wanted to hear it.”

The Terra UST stablecoin was de-pegged from the dollar price in June, sparking a chain of events that led to several platforms filing for bankruptcy. 3AC had made his $560 million hefty investment in his UST and its balancing asset, his LUNA.

3AC is reported to have constructed its positions using highly leveraged counterparty funds. The company filed for Chapter 15 bankruptcy. July 1 Davies and co-founder Zhu Su have gone missing.who was rumored to be on the run.

Davies alleges that FTX was involved in the bankruptcy of 3AC.

To date, Davis has accused former FTX CEO Sam Bankman-Fried (SBF) of hiding “a lot of things” based on his claims.

At the same time, he attributed elements of 3AC’s collapse to SBF, arguing that FTX/Alameda triggered a stop-loss against a traded 3AC position aggressively.

โ€œOne of our biggest critics in the immediate aftermath of the collapse was FTXโ€™s Sam Bankman-Fried himself. And it’s becoming clear that he was eyeing our position.”

When asked to prove counter-trading claims, Davis was unable to identify concrete cast iron evidence.

“They have similar ownership. It’s becoming clear that they shared information and sat in the same room… FTX’s most recent employee seeks and liquidates our positions.” I am proud of it.โ€

Summing up his argument, Davies said there was no separation between the two entities.

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