2022 was one of the most difficult years in the history of cryptocurrency. Terra’s demise ended with Digital Currency Group, or DCG. Similar hypotheses were developed. Su Zhu, the founder of 3AC, the first business to fail due to Terra’s demise, has developed his idea.
The failure of FTX had a significant impact on Genesis Trading, a DCG subsidiary. Su Zhu charged DCG of cooperating with FTX when the business was engaged in a legal battle with cryptocurrency exchange Gemini. The co-founder of 3AC speculated in a series of tweets that DCG might have been responsible for Terra and Steth’s passing while evading capture.
Zhu added that FTX and DCG gained a fair bit from invading Terra. After 3AC’s bankruptcy and Babel’s decline, DCG suffered. Zhu said DCG should have undergone a restructuring at the time to avoid its current situation.
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The founder of 3AC also hinted at Barry Silbert and Sam Bankman-Fried’s friendship. He further explained what would happen over the following few days. Zhu tweeted,
“Genesis creditors will push it into bankruptcy and take remaining dcg assets in coming days either way, they are likely demanding Barry pays back his cashouts the easy way instead of waiting for a DoJ criminal case with restitution punishments”
Reason Behind The Accusation of FTX and DCG Being Involved in Terra Downfall
It is relevant to note that Su Zhu was one of many people to recognize the connection between FTX and Terra. It was revealed earlier this month that Federal prosecutors were looking into SBF for market manipulation that led to the collapse of Terra.
Do Kwon, the creator of Terra acknowledged the same and tweeted,
Despite this, several community investors criticized Zhu for his own platform’s shortcomings. One Twitter user tweeted to Zhu to remind him:
“Here’s a rough summary of 3ac. Still on the run, still being liquidated, still everyone else’s fault.”
Others commented that Zhu ought to be in jail right now.
