3 Arrows Capital (3AC) cryptocurrency hedge fund co-founder Zhu Su claims DCG
In his thread, the co-founder of the bankrupt hedge fund explained that FTX head Sam Bankman-Fried (SBF) and DCG CEO Barry Silbert were very close. For example, SBF was one of the board members at Genesis, which is a subsidiary of DCG. Guess who later approved FTX’s first FTT
Now, according to Zhu, DCG is worthless. In addition, FTX creditors have information about a fraudulent transfer to return the capital of Alameda to Genesis. Because of this, creditors will soon drive DCG into bankruptcy and take its remaining assets. However, there is a possibility that Barry Silbert will be asked to return the money to the creditors on his own to end the case without going to court. Whether he will take such a step remains unclear.
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Zhu pointed out that DCG incurred losses after companies that participated in its bitcoin trust Grayscale collapsed. But instead of restructuring its business, the company, having decided that the crisis in the market would soon pass, continued to operate despite insolvency.
“Instead, they [DCG] fabricated a left pocket right pocket callable promissory note that magically filled the hole. This is like a kid losing at poker and saying, ‘I am fine, my dad will pay you, let me keep playing,’ but if your dad is yourself.”
3AC themselves filed for bankruptcy in July 2022 after a notice of default for failure to pay a loan to Voyager Digital. In total, the cryptocurrency broker loaned the hedge fund 15,250 BTC (~$255M at the time of writing) and $350M USDC.
The possible involvement of DCG and FTX in the collapse of LUNA and stETH was also noticed by Lookonchain analysts. Specialists noticed that the cancellation of stETH/ETH binding could be related to the actions of SFB.
According to Lookonchain, after the collapse of UST/LUNA, an unknown person withdrew 110,286 stETH (~$131M) from Anchor Protocol and transferred all funds to an FTX account. After that stETH/ETH began to depeg [the phenomenon in which a stablecoin deviates from its intended peg].
“The address ‘0xd5c6’ is a new address and received 12 ETH from FTX as a gas fee. After transferring all stETH to FTX, someone transferred the remaining 10,5 ETH back to FTX,” researchers noted.
In addition, they said that they cannot be sure that the address belongs to SBF, but “it is very likely.”
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