Zhu Su, co-founder of Three Arrows Capital, said: “DCG and FTX conspired to attack LUNA and stETH, and made a lot of money in the process. Last summer, DCG suffered huge losses due to the bankruptcy of Three Arrows Capital, and Babel Finance and other participants The same goes for GBTC’s company. They could have soberly chosen to restructure at the time, and instead they plugged the hole with a ‘left handed right handed’ callable promissory note. It’s like a kid losing poker and saying ‘my dad will pay you, Let me keep playing’, but ‘Daddy’ is himself.”
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. And it has been taking more deposits during this time And hope 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 loans).
Creditors of Genesis, which will push it into bankruptcy in the next few days and take over the remaining DCG assets, may demand that Barry pay off his cash in an easy way, rather than waiting for a criminal case and restitution penalty from the US Department of Justice. “