Zhu Su from 3AC blames DCG and FTX for LUNA and STETH's Collapse
No sooner had we moved away from the New Year trading pause than some crypto-influencers had already begun to analyze last year's events and moved on to targeted accusations. So the founder of Three Arrows Capital (3AC), Zhu Su, in his latest Twitter thread openly accused Digital Currency Group (DCG), the parent company of Grayscale Investments and Genesis Trading, as well as the infamous bankrupt FTX, of conspiring to collapse LUNA and STETH. Recall that 3AC was the world's largest hedging crypto fund, which went bankrupt literally immediately after the collapse of Terra. This collapse resulted in huge losses for DCG and FTX that went beyond 3AC's bailouts due to the bankruptcy of Babel and other firms that had stakes in the Grayscale Bitcoin Trust (GBTC), although Su believes DCG could have partnered with 3AC to debt restructuring: “Instead they fabricated a left pocket right pocket callable promissory note that magically filled the hole. This is like a kid losing at poker and saying ‘I am fine, my dad will pay you, let me keep playing’.” The collapse of FTX is also known to have created a major liquidity crisis for Genesis Global (GG), a crypto lending subsidiary of DCG. But according to Su, GG was in trouble even during the collapse of LUNA. The businessman claims that DCG and FTX took the 3AC bankruptcy as an opportunity to “misdirect” the crypto community for several months and used several methods to attack it. Thus, Genesis actively accepted deposits for six months after the collapse of Terra, giving false hopes that the markets would rise.
Fully Justified: Bithumb's Lee Jong Hoon Didn't Embezzle $70 Million
Former chairman of South Korean cryptocurrency exchange Bithumb, Lee Jong-hoon, who was accused of violating the Law on Enforcement of Punishment for Specific Economic Crimes in 2018 due to fraud, was found not guilty by the 34th Criminal Agreement Chamber of the Seoul Central District Court on January 3, 2023. . Previously, the prosecution alleges that Jung Hoon “swindled” 100 billion won (approximately $70 million) during negotiations to acquire Bithumb from the chairman of cosmetic surgery company BK Group, Kim Byung-gun. If the court found the businessman guilty, he would face a prison sentence of up to 8 years. According to the local press, in their official response to the result of the court review, representatives of Bithumb stated that they respect the decision of the court. In addition, they also clarified that to date, the crypto exchange is subordinate to “professional managers”, and the former chairman is not involved in current operations. Notably, almost a week before the judgment was issued, on December 30, 2022, the chief executive of Bithumb's largest shareholder, Pak Mo, was found dead in front of his own house after he received allegations of misappropriation of funds and manipulation of stock prices.