Bankrupt agency Three Arrows Capital’s co-founder Zhu Su alleged that Digital Foreign money Group (DCG) and FTX conspired to assault Terra LUNA and staked Ethereum (stETH) in a Jan. 3 Twitter thread.
The hedge fund co-founder mentioned this was doable due to the shut relationship between Sam Bankman-Fried and DCG CEO Barry Silbert. In keeping with Zhu Su, SBF was on the board of embattled DCG’s subsidiary, Genesis, which later granted the primary FTT-backed mortgage.
Over the previous 12 months, Genesis acquired billions of FTT tokens from Alameda Analysis and FTX, each of which have collapsed.
Zhu added that DCG took substantial losses from the chapter of corporations concerned in its Grayscale’s Bitcoin Belief (GBTC). Nevertheless, as a substitute of restructuring its companies, DCG employed misdirection techniques that allowed it to maintain working whereas bancrupt and hoping the market would get better.
Zhu mentioned:
“[DCG] fabricated a left pocket proper pocket callable promissory word that magically stuffed the outlet. This is sort of a child shedding at poker and saying, “I’m fantastic, my dad pays you, let me preserve enjoying,” but when your dad is definitely your self.”
The bankrupt hedge fund co-founder mentioned, “DCG worth is 0.” He added that FTX collectors have a case of fraudulent conveyance on Alameda’s capital returns to Genesis. He claimed:
“Genesis collectors will push it into chapter 11 and take remaining dcg property in coming days both method, they’re seemingly demanding Barry pays again his cashouts the straightforward method as a substitute of ready for a DoJ felony case with restitution punishments.”