The founder of the currently inoperative crypto hedge fund Three Arrows Capital (3AC) has started to make statements regarding the firm’s bankruptcy.
This comes after months of silence after the bankruptcy. In recent times, the Three Arrows Capital founder, Kyle Davies, has taken to the social media platform Twitter in order to speak out about the collapse of the crypto exchange FTX, along with speaking about their trading arm, Alameda Research.
According to the information that is doing the rounds on social media, Davies speaks about FTX’s involvement, which was a vital reason that caused 3AC to go bankrupt.
3AC has been a victim of the infamous Luna and TerraUSD crises.
It had considerable exposure to FTX and their token FTT, and that has been a reason behind 3AC’s fall.
In his tweet, Davies mentioned,
We understand now that FTX/Alameda hunted our positions but at the end of the day we lost our money (we were the largest $ losers) and that of LP’s/creditors. Today we are not in control of the firm, there is a liquidation process which will run due course for all involved.
3AC Says Were Hunted And Their Positions Liquidated
According to Davis, FTX CEO Sam Bankman-Fried had been constantly hunting the fund, which in turn had formed a huge loophole on the balance sheet.
Officially, following the Terra debacle, 3AC’s substantial assets had lost nearly 80% of their value. This move furthered the liquidation of the hedge fund.
Furthermore, it caused the funds, which were already on the verge of bankruptcy, to completely collapse.
Davis also mentions that Sam Bankman-Fried, CEO of FTX, has been “covering up a lot of his part.” 3AC also charged FTX and Almada with conspiring to trade against their clients.
Over and above this, 3AC has also found proof that FTX HK employee Clement has leaked 3AC’s position on the market and many other confidential details to many other people throughout the year.
By leaking this information about one of the biggest funds in the industry, it put 3AC in a vulnerable spot, making them an easy target.
This would also mean that there would be liquidations for most of its positions. By doing this, it caused a considerable fall in 3AC’s performance.
3AC Is Seeking Justice
Zhu Su, the other founder of Three Arrows Capital and the former CEO of the crypto fund, has claimed that they were “scammed.”
This was in response to the screenshots of a Telegram chat with Alameda.
Su, stated,
Its a long story but we were scammed just like you guys, its ok –justice is coming.
Kyle Davies has also spoken about the collapse of Luna’s algorithmic stablecoin UST, saying that it had
Completely messed up the thesus around it. We were attracted by the quality of backers/builders/team and didn’t spend enough time on the mechanics.
Source: https://bitcoinist.com/what-founder-of-3ac-has-say-about-ftxs-fallout/