Zhu Su, the co-founder of Three Arrows Capital, tweeted: “DCG and FTX conspired to attack LUNA and stETH, they made a lot of money in the process. Last summer, DCG suffered huge losses due to the bankruptcy of Three Arrows Capital, the same goes for Babel Finance and other companies involved in GBTC. They could have calmly restructured at the time, instead, they fabricated a left pocket right pocket callable promissory note that magically filled the hole. It’s 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.”
Zhu Su added: “DCG, like FTX, has been misleading customers for the past few months and also used various methods to attack Three Arrows Capital. No one asked how Genesis filled the hole. It has been taking more deposits during this time, hoping the market price goes up. DCG is now worthless and involved in criminal fraud, and most people in the industry know that DCG founder Barry and SBF were close from the beginning (SBF was on the board of Genesis and gave him the first FTT-backed loan). Creditors of Genesis, which will push it into bankruptcy in the next few days and take over the remaining DCG assets, may ask Barry to repay his cash simply instead of waiting for the DoJ criminal cases and compensation penalties.”