• The founder of the hedge fund Three Arrows Capital Zhu Su has accused Digital Currency Group of being criminally fraudulent.
• Zhu Su claims that DCG and FTX conspired to bring down Terra’s LUNA token and Staked Ether (stETH).
• At its peak, 3AC managed more than $10 billion worth of assets before it went bankrupt in the bear market.
The crypto industry was recently shaken by the news of the bankruptcy of the Singapore-based crypto hedge fund Three Arrows Capital (3AC). 3AC had managed more than $10 billion worth of assets at its peak and was one of the many industry participants that went bankrupt in the bear market. Now, the founder of 3AC, Zhu Su, has leveled fresh allegations against Digital Currency Group (DCG), the parent firm of Grayscale Investments and Genesis Trading.
In a recent Twitter thread, Zhu Su alleged that DCG and FTX had conspired to bring down Terra’s LUNA token and Staked Ether (stETH), causing both firms to suffer hefty losses as 3AC went bankrupt after the Terra collapse. Zhu Su further suggested that DCG had engaged in criminal fraud, and was taking advantage of its position in the industry to manipulate the market.
The allegations have caused quite a stir in the crypto space, with many investors voicing their concerns and suspicions. While the full extent of DCG’s involvement in the Terra collapse remains unclear, the accusations are certainly troubling. Investors are now watching closely to see how the matter will be resolved and whether an investigation will be launched.
Given the serious nature of the allegations, it is likely that further developments in the case will be closely watched. For now, the crypto industry is left to wonder whether the accusations leveled by Zhu Su are true or not. With so much money on the line, it is important to ensure that all parties involved are held accountable for any wrongdoings.