3AC founder Zhu Su alleges DCG and FTX caused the fall of LUNA and STETH

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Seven months down the line, 3AC founder, Zhu Su, has come out openly to blame Digital Currency Group (DCG), the parent firm behind Grayscale Investments and Genesis Trading, for the collapse of Terra.

Last year saw some of the most dramatic collapses in the history of cryptocurrencies. It all started with the collapse of Terra LUNA in May before the contagion spread to other crypto projects like Three Arrows Capital, Celsius, and lastly the collapse of FTX which seems to be pulling down many more crypto projects with it.

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Allegations of FTX and DCG conspiring against Terra

In a Twitter thread, Zhu Su alleges that FTX together with DCG conspired against LUNA and STETH.

Here’s rough summary of dcg situation

1) they conspired w FTX to attack Luna and steth and made a fair bit doing so

2) they took substantial losses in the summer from our bankruptcy as well as Babel, and other firms involved in gbtc

3) they could’ve calmly restructured then

— Zhu Su 🔺 (@zhusu) January 3, 2023

In a follow-up tweet, Zhu went ahead to loop in Genesis as having conspired with the two to short LUNA in an attempt to raise funds by making 9 figures profits. The tweet reads:

“Are Genesis execution traders still bragging about how they conspired w SBF to nuke the UST curvepools and shorted Luna to make 9 figs, in order to try to raise a fund? New prisoner’s dilemma just dropped”

Zhu also goes ahead to allege that most OGs are aware of how close Sam Bankman-Fried (SBF) and Barry are close. In a tweet, Zhu said:

“Most OGs are well aware of how close Barry and SBF were since beginning (SBF is on board of genesis, they gave him his first ftt backed loan)”

The implosion that resulted in the collapse of Terra LUNA and thereafter the 3AC led to a liquidity crisis for many crypto platforms including FTX. And as we now know it, the collapse of FTX has resulted in a major liquidity crisis for DCG’s crypto lending arm Genesis Global although Zhu believes Genesis was in trouble immediately after Terra LUNA went under.

Zhu Su is however not the first person to raise such allegations against FTX and DCG since Terra LUNA founder Do Kwon, at the beginning of December 2022, in a series of tweets, blamed former FTX CEO SBF and Genesis for the Terra-LUNA crisis.

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