Defunct Billion-Dollar Crypto Hedge Fund Three Arrows Capital Speaks Out, Blames Collapse on FTX

Crypto Update
4 Min Read

- Advertisement -
Image source: Bloomberg

Kyle Davis, the founder of collapsed crypto fund Three Arrows Capital (3AC), attacked FTX, claiming that the exchange victimized his position during the collapse of LUNA.

Speaking on the results of crypto exchange FTX and its trading arm Alameda Research, Davis Told The firm was also involved in triggering the bankruptcy of 3AC.

“We now understand that FTX/Almeida victimized our position but at the end of the day we lost our money (we were the biggest losers) and LPs/creditors. Today we are not in control of the firm, there is a Liquidation process that will take place at an appropriate time for all involved,” he said in a tweet.

Davis also addressed the fallout of Luna’s algorithmic stablecoin UST, admitting that they “completely messed up the thesis around it. We were attracted by the quality of the supporters/builders/team and enough time spent on the mechanics.” not spent.”

Zhu Su, another founder of 3AC and former CEO of the crypto fund, also claimed that he was “scammed” in response to a screenshot of a Telegram chat with Almeida. He said, “It is a long story but we were cheated just like you guys, okay – justice is coming.”

However, most crypto users did not sympathize with the founders of 3AC. Pseudonymous crypto trader Fatman, who has been one of the biggest critics of almost everyone involved in recent crypto meltdowns, primarily Doe Kwon, noted that the 3AC founder was equally to blame.

“It’s easy to blame others, but you left out the part where you lied about your AUM, offered ridiculous rates in an effort to get more money, and steal from your partners’ segregated accounts.” We all do bad business and that’s fine – but deceit and theft are not,” he said.

as informed ofFTX announced that it filed for Chapter 11 bankruptcy in Delaware on Thursday, ending its desperate scramble for investors to repair its balance sheet. Notably, the US arm of crypto exchange FTX US has also been implicated in the proceedings, despite the former CEO’s claims that his US exchange was fine.

According to some reports, FTX liabilities are anywhere between $10 billion and $50 billion.

Meanwhile, Cardano founder Charles Hoskinson argued that the collapse of FTX was not a failure of the crypto itself, but rather the loss of the flawed and centralized infrastructure around the platform.

“Crypto didn’t fail. People failed. People in positions of trust. At the end of the day, as much as we like to believe in the principles of cryptocurrency, it all has to do with people putting money into centralized exchanges and organizations putting money toward them. had to do with handing over centralized businesses,” he said.



Bitcoin Crypto Related Post

Share this Article
Leave a review

Leave a review

Your email address will not be published. Required fields are marked *

adbanner