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Crypto Community Calls Out Su Zhu For Firing Off Allegations Against Digital Currency Group

Su Zhu, Three Arrows Capital’s (3AC) founder, shared a thread of tweets on his official account on Twitter. In his posts, Zhu made accusations against the now-bankrupt crypto exchange FTX and DCG. Nonetheless, the crypto community is reacting to the remarks made by the 3AC founder. The community members are calling out Zhu for accusing others rather than taking accountability.

Crypto Community Calls 3AC Co-Founder for Accusations against DCG

In his thread, he mentioned that the role played by DCG was very significant in the LUNA – now known as Terra classic (LUNC) – collapse. As per Zhu’s claim, the venture capital company was a part of a conspiracy for an attack on LUNC. He believes that FTX was another participant in that conspiracy. As mentioned by Zhus, both firms attempted to carry out a restructuring plan to recover from the losses witnessed formerly during the bankruptcy of 3AC.

As the allegations go on, FTX and DCG utilized the 3AC collapse as a source to collect extra deposits despite that they were insolvent at that time. While gathering the funds, Zhu wrote, the platforms were hoping that the prices of the market will surge in some time. Zhu also briefly touched on the stETH’s de-pegging incident in his post. In that episode, a Lide-backed token traded below the price of ETH resulted in concerns about bad consequences.

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As per the 3AC founder, the huge hole was filled by DCG magically. Notwithstanding the endeavors of Zhu to demonetize FTX and DCG, the community is of the view that the person should concentrate on the misdeeds done by himself. On Twitter, Anthony Sassano (an Ether bull and the host of Daily Gwei) additionally addressed Zhu. Sassano sarcastically noted that except Kyle Davis (a 3AC co-founder) and Zhu everyone was responsible for the 3AC crash.

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He added that they were completely innocent and were compelled to lose while utilizing the highly profitable trading plans. In the meantime, several difficulties are being experienced in the bankruptcy procedure of 3AC as the founders of the platform may be situated in the United Arab Emirates and Indonesia where the enforcement of the court orders may be hard.

The lawyers representing the liquidators have asserted that the founders of 3AC have remained unsuccessful in coordinating with the liquidators during some of the previous months notwithstanding consenting to a communications protocol. On the 2nd of December, the liquidators’ legal team additionally called out the founders of Three Arrows Capital.

They criticized them for conversing with media as well as actively appearing on social media platforms but remaining ineffective in engaging with them. As claimed by the legal team, the founders just had short conversations with liquidators.

As per them, the founders recurrently changed their jurisdictions. Barry Silbert and his firm Digital Currency Group (DCG) have been facing controversy also for other reasons. Cameron Winklevoss, the co-founder of Gemini posted an open letter on Twitter for Silbert, condemning him for utilizing bad tactics. In the words of Winklevoss, Silbert rejected to consent to a timeline with chief landmarks.

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DCG’s Silbert Dismisses the Claims of Gemini CEO

3 consumers of Gemini have submitted a petition for a class action lawsuit confronting DCG and Genesis. This comes as a response to the Earn program of Gemini following the stop put by the platform over the withdrawals. Silbert reacted to the respective letter and refuted any missed payments. He straightly noted that $1.675B was not borrowed by DCG from Genesis.


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Mubashar Nawaz (United Arab Emirates)

Mubashar Nawaz is an experienced crypto writer working for Tokenhell. Having passion for writing, he covers news articles from blockchain to cryptocurrency.

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