Su Zhu Blames DCG For Conspiring With FTX and Causing Terra’s Fall

• Su Zhu blames DCG for conspiring with FTX to attack Terra.
• The co-founder of 3AC explained that DCG could easily be restructured.
• Zhu continued to accuse the DCG group of taking similar actions to FTX.

Another crypto drama forms as Su Zhu, the co-founder of the Three Arrows Capital (3AC), tweeted that Digital Currency Group (DCG) conspired with FTX to attack Terra. Zhu blamed DCG for taking “substantial losses” from 3AC’s bankruptcy.

Su Zhu expounded his views about how DCG could have easily restructured. The 3AC co-founder stated, “Instead they 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 actually yourself.”

The 3AC co-founder continued to accuse the DCG group of taking similar actions to FTX. Su Zhu explained that DCG proceeds to misdirect the people by using various methods to “attack” 3AC and prevented anyone from asking the hard question which is “how did genesis fill the hole.”

Furthermore, Su Zhu criticized the actions of DCG, claiming:

DCG value is 0, criminal fraud, FTX creditors also have a case for fraudulent conveyance on Alameda returns of capital to Genesis.   

The 3AC co-founder then reminded the crypto community about the close relationship between Barry Silbert, the CEO of DCG, and Sam Bankman-Fried, the founder of the fallen FTX.

Ending the Twitter thread, the 3AC co-founder mentioned that creditors might push Genesis to the brink of bankruptcy. Moreover, Zhu predicted that the creditors would expect Silbert to back the cashouts, which is the easy way, instead of waiting for a department of Justice’s (DoJ) criminal case with restitution punishments.