Due to liquidity issues surrounding Digital Currency Group (DCG), Three Arrows Capital (3AC) founder Zhu Zhu published a twitter thread containing allegations against DCG and FTX.
However, the founder was immediately condemned by the crypto community for blaming others and not taking responsibility. In the post, Zhu claims that DCG played a role in the debacle of LUNA, now known as Terra Classic (LUNC). Zhu claimed that the VC and the FTX exchange conspired to attack LUNC and profit from it. The 3AC founder also said that instead of reorganizing from the losses from 3AC's bankruptcy, DCG "magically filled the hole".
Despite Zhu's efforts to demonize DCG and FTX, the community felt he should focus on his misdeeds. Daily Gwei host and Ether bull Anthony Sassano also called out Zhu on Twitter. Sassano quipped that everyone but Zhu and co-founder Kyle Davis were behind 3AC's collapse. "They are completely innocent parties who were simply forced to lose money in a highly profitable trading strategy," he wrote.
Meanwhile, 3AC faces difficulties in its bankruptcy proceedings as its founders may be located in Indonesia and the United Arab Emirates, which may have difficulty enforcing court orders. Lawyers representing the liquidators claim the 3AC founders have failed to coordinate with the liquidators over the past few months despite agreeing to the correspondence agreement.
On December 2, the liquidators' legal team also called on the 3AC founders to speak to the media and be active on social media, but failed to engage them. The legal team claimed that the founders had only limited discussions with liquidators and that jurisdictions were often changed.
