3AC founder accuses FTX & DCG of instigating Terra’s downfall

Sahana Kiran
Source – Unsplash

2022 was undoubtedly one of the most turbulent years in the history of crypto. A disastrous streak started by Terra ended with the downfall of Digital Currency Group or DCG. While these are separate entities, they were conjectured to have influenced each other. Similar theories followed suit. Now, the founder of the first company that toppled due to Terra’s collapse, 3AC’s Su Zhu has come up with his own theory.

Genesis Trading, a DCG subsidiary, was severely affected by FTX’s demise. Su Zhu accused DCG of working with FTX in the midst of the company’s dispute with cryptocurrency exchange Gemini. In a series of tweets, the 3AC co-founder suggested that DCG could have been responsible for Terra and Steth’s demise while on the run.

Zhu further noted that both FTX and DCG made “a fair bit” by attacking Terra. Following this, DCG took a hit after 3AC’s bankruptcy as well as Babel’s plummet. Zhu said that DCG should have undergone a restructuring at the time to prevent its current predicament. He further went on to describe what DCG did instead.

The 3AC founder also pointed out the friendship between Sam Bankman-Fried and Barry Silbert. Additionally, elaborating on what would transpire over the next couple of days, Zhu wrote,

“Genesis creditors will push it into bankruptcy and take remaining dcg assets in coming days either way, they are likely demanding Barry pays back his cashouts the easy way instead of waiting for a DoJ criminal case with restitution punishments”

Here’s Why FTX & DCG are being accused of bringing down Terra

It should be noted that Su Zhu wasn’t the only one that saw the link between FTX and Terra. Earlier this month, it was brought to light that Federal prosecutors were probing SBF for market manipulation that caused the crash of Terra.

Do Kwon, the creator of Terra acknowledged the same and tweeted,

Despite this, several in the community called out Zhu for the failure of his own platform. One Twitter user reminded Zhu by tweeting,

“Here’s a rough summary of 3ac. Still on the run, still being liquidated, still everyone else’s fault.”

A few others noted how Zhu should currently be behind bars.