Interesting claims about the Terra LUNA collapse fell on the agenda like a bomb. The community cited the statements of Zhu Su, co-founder, CEO and CIO of Singapore-based cryptocurrency hedge fund Three Arrows Capital. He stated that Su’s statements are a “short summary” of developments regarding the Digital Currency Group (DCG). Here are the details…
Big allegations of Terra LUNA collapse
The year 2022 has been one of the most challenging years for global markets, especially cryptocurrencies. Crypto world; FTX has experienced many negative events such as the bankruptcy of major companies such as Three Arrows Capital, Genesis and Voyager. These companies mostly went into crisis after Terra (LUNA) crashed in May 2022. Not only that, Bitcoin, which sold at around $48,000 in early 2022, has now dropped to the $16,000 region.
The streak of bankruptcies of these high-profile companies began with Three Arrows Capital and Genesis Trading. According to sources, Genesis’ losses are linked to over-leveraged fund manager Three Arrows Capital and Hong Kong crypto financier Babel Finance. On the other hand, MartyParty tweeted that 3AC co-founder Zhu Su shared a brief statement on how “Barry Silbert conspired with the SBF to kill Terra.”
Three Arrows Capital founder Zhu Su also blames DCG for the fall of Terra (LUNA) and STETH, along with FTX. The 3AC founder believes DCG and FTX are misleading the crypto community even though they know Genesis is collapsing.
Companies didn’t bother to structure their losses
Specifically, a few minutes before MartyParty’s tweet, Zhu Su updated his Twitter page through a series of tweets. He gave a brief analysis of what happened when Barry Silbert, Chairman of the Digital Currency Group (DCG), conspired with the crashed FTX. In particular, Zhu Su stated that DCG conspired with FTX to “attack Luna and stETH.” He claimed that crypto companies included in the Grayscale Bitcoin Trust (GBTC), such as Three Arrows Capital and Babel Finance, accumulated significant losses over the summer. Interestingly, Zhu Su tweeted that the company is issuing a promissory note rather than restructuring losses:
Instead, they produced a promissory note that “magically fills the void.” It’s like a kid losing at poker and saying, “I’m fine, daddy will give you money, let me keep playing.” But in this case, your father is actually you.
Gemini founder blames Silbert
It is noteworthy that Zhu Su also mentioned the accusation of Cameron Winklevoss, co-founder of crypto exchange Gemini, against Silbert. cryptocoin.com As we have reported, Winklevoss wrote an open letter to Barry Silbert. Winklevoss accused Silbert of using $1.65 billion in cash, alleging that DCG “owed” Genesis. Winklevoss used the following statements:
This money; You got it for greedy share repurchases, investments in illiquid ventures, and NAV transactions of kamikaze Grayscale, which inflates your trust’s fee-generating assets under management. It’s all for creditors spending and purely for your personal gain.
In addition, Zhu Su added that Genesis creditors will receive DCG’s remaining assets in the coming days. He also highlighted “how close Barry and SBF have been from the beginning.”