3AC’s Su Zhu accuses FTX and DCG of plotting these moves against LUNA

• 3AC’s Su Zhu has alleged that DCG and FTX conspired to onslaught LUNA and stETH.
• Su Zhu and Kyle Davis antecedently alleged that Alameda Research had hunted 3AC’s positions.

Su Zhu, the antheral down Three Arrows Capital, has enactment distant alleged a alternatively concerning conspiracy regarding Terra’s illness successful mid 2022. The conspiracy involves bankrupt crypto speech FTX and the Digital Currency Group. 

In a Twitter thread connected 3 January, Zhu claimed that some firms coordinated an onslaught against Terra’s autochthonal token LUNA and stETH, which led to a catastrophic depegging. These events culminated successful the downfall of Zhu’S 3AC, which is present a defunct crypto hedge fund. 

Here's unsmooth summary of dcg situation

1) they conspired w FTX to onslaught Luna and steth and made a just spot doing so

2) they took important losses successful the summertime from our bankruptcy arsenic good arsenic Babel, and different firms progressive successful gbtc

3) they could've calmly restructured then

— Zhu Su 🔺 (@zhusu) January 3, 2023

Su Zhu claimed conspiracy against LUNA

Su Zhu claimed that the Digital Currency Group conspired with Sam Bankman-Fried’s FTX to onslaught LUNA and stETH. He further alleged that some firms netted a “fair bit” successful this process. According to him, some firms faced important losses pursuing the bankruptcy of 3AC and Babel Finance. 

However, alternatively of restructuring, DCG and FTX allegedly engaged successful what Zhu described arsenic a conspiracy. His tweet read,

“Instead, they fabricated a near pouch close pouch callable promissory enactment that magically filled the hole. This is similar a kid losing astatine poker and saying, ‘I americium fine, my dada volition wage you, fto maine support playing,’ but if your dada is really yourself.”

The Digital Currency Group is presently nether occurrence for its liquidity issues and alleged commingling of funds with Genesis Global Capital, a wholly owned subsidiary. The promissory note referenced supra was pointed retired by Gemini co-founder Cameron Winklevoss connected 3 January. 

According to Su Zhu, DCG continued to judge much deposits contempt being insolvent. This was allegedly done successful anticipation of a reversal successful the market. Zhu accused some firms of misleading their customers for months. 

Response from crypto twitter

The crypto assemblage connected Twitter was of the sentiment that Zhu should absorption connected his misdeeds and instrumentality work for them. Users connected Twitter person accused him of trying to radiance a airy connected different atrocious actors successful the manufacture successful a bid to pull attraction distant from his actions. 

One idiosyncratic asked,

“So it was everyone else’s responsibility and you instrumentality nary idiosyncratic work astatine each for your actions?”

This is not the archetypal clip that Zhu has claimed foul play against 3AC. In November 2022, helium and 3AC co-founder Kyle Davis alleged that Sam Bankman-Fried’s Alameda Research “hunted” 3AC’s positions.