TechFlow News — Zhu Su, co-founder of Three Arrows Capital, tweeted: "DCG colluded with FTX to attack LUNA and stETH, making substantial profits in the process. Last summer, DCG suffered massive losses due to Three Arrows Capital's collapse, as did Babel Finance and other firms involved in GBTC. They could have calmly chosen restructuring at that time, but instead filled the gap through redeemable promissory notes passed between their own entities—a move akin to a child losing at poker and saying, 'My dad will pay you so I can keep playing,' when in fact the 'dad' is himself."
Zhu Su added: "Like FTX, DCG has been misleading clients over the past several months while using various methods to target Three Arrows Capital. No one asked how Genesis managed to cover its shortfall, yet during this period it continued absorbing more deposits, hoping market prices would rise. DCG is now worthless and suspected of criminal fraud. Most industry insiders know that DCG founder Barry and SBF have long been closely connected (SBF was on Genesis’s board and provided its first loan backed by FTT). Genesis creditors will push DCG into bankruptcy proceedings in the coming days and seize remaining DCG assets. They may demand Barry repay his cash-outs directly in a straightforward manner, rather than waiting for U.S. Department of Justice criminal cases and penalty-based restitution."Original link
