Zhu Su, a co-founder of the now-insolvent crypto hedge fund Three Arrows Capital, took off to Twitter to share his vision of DCG’s current situation as the company struggles with liquidity issues. In a Tuesday thread, Zhu publicly accused DCG of conspiring with collapsed FTX to attack Terra’s Luna and Lido’s stETH — and was predictably ridiculed by the crypto community.
According to Zhu, both FTX and DCG made profits from attacking Luna but took substantial losses in the summer from 3AC bankruptcy. However, instead of restructuring, DCG “fabricated a left pocket right pocket callable promissory note that magically filled the hole,” Zhu claims.
“They, like FTX, proceeded to misdirect for months, using various methods to attack us and also not have anyone ask the hard questions which is how did Genesis fill the hole. They, like FTX, spent six months taking more deposits while insolvent and hoping mkt goes up,” 3AC co-founder added.
“Everyone was behind the collapse of 3ac except for Su Zhu and Kyle Davies - they are totally innocent parties who were simply forced to be on the losing side of highly profitable trading strategies,” Ethereum educator and The Daily Gwei host Anthony Sassano noted wryly.
“That makes no sense, Su. If they loaned to you they must have known you were long Luna. Why would they attack the party they believed had a stake in Luna going up?” another user opined.
Read also: Gemini customers request class action arbitration against Genesis and DCG
Zhu’s Twitter rant comes just hours after Gemini co-founder Cameron Winklevoss tweeted an open letter to DCG’s CEO Barry Silbert, accusing him of engaging in “bad faith stall tactics” and deliberately stalling the process of resolving the dispute over $900 million of Gemini Earn users’ funds stuck in Genesis, DCG’s troubled subsidiary.
"For the past six weeks, we have done everything we can to engage with you in a good faith and collaborative manner in order to reach a consensual resolution for you to pay back the $900 million that you owe, while preserving your business," Winklevoss wrote. “We appreciate that there are startup costs to any restructuring, and at times things don’t go as fast as we would all like. However, it is now becoming clear that you have been engaging in bad faith stall tactics.”
