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Su Zhu gets called out by the community as he fires off accusations against DCG

The Cointelegraph ​

Cryptocoins News / The Cointelegraph ​ 136 Views

The 3AC founder fired off allegations against the Digital Currency Group, saying that it conspired with FTX to attack LUNA.

As liquidity issues surround the Digital Currency Group (DCG), Three Arrows Capital (3AC) founder Su Zhu made a Twitter thread containing allegations against DCG and FTX. However, the founder immediately got called out by the crypto community for blaming others and not taking accountability. 

In the thread, Zhu alleged that DCG had a role in the collapse of LUNA2 (LUNA), now called Luna Classic (LUNC). Zhu claimed that the venture capital firm conspired with the FTX exchange to attack LUNC and made a profit by doing so. The 3AC founder also said that instead of restructuring from losses due to the 3AC bankruptcy, DCG “magically filled the hole.”

Despite Zhu’s efforts to demonize DCG and FTX, the community believes that he should focus on his own misdeeds.

The Daily Gwei host and Ether bull Anthony Sassano also called out Zhu on Twitter. Sassano employed sarcasm, saying that everyone was behind the 3AC collapse except for Zhu and co-founder Kyle Davis. “They are totally innocent parties who were simply forced to be on the losing side of highly profitable trading strategies,” he wrote. 

Community member commenting on the situation. Source: Twitter

Zhu's tweets came hours after Gemini founder Cameron Winklevoss posted an open letter to Barry Silbert, the CEO of DCG. Winklevoss urged Silbert to pay back $900 million that’s allegedly owed by DCG’s subsidiary company Genesis to Gemini’s clients. The Gemini founder pointed out that DCG owes Genesis $1.6 billion and said that this is money that Genesis should use to pay Gemini. However, Silbert responded that DCG never missed an interest payment to Genesis. 

Apart from Zhu, other prominent members of the crypto community also joined the conversation. Blockstream CEO Adam Back also pointed out some factors that could be significant. Back tweeted that:

Through a Telegram poll, Cointelegraph asked the community about their opinion on the issue. A majority of the participants refused to take sides. 

23% of the participants backed Su Zhu, 15% backed DCG and 62% refused to pick sides.

Meanwhile, the 3AC bankruptcy process faces difficulties, as its founders may be located in Indonesia and the United Arab Emirates, where it may be difficult to enforce court orders. Lawyers who represent liquidators have claimed that the 3AC founders have failed to coordinate with liquidators in the past few months despite agreeing to a communications protocol. 

Related: 3AC subpoenas issued as dispute grows over claims of Terraform dump

On Dec. 2, the legal team for liquidators also called out the 3AC founders for talking to the media and being active on social media while failing to engage with them. The legal team claimed that the founders only had limited discussions with liquidators and frequently changed jurisdictions.


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