Three Arrows Capital (3AC) Founder Blames DCG and FTX for Terra (LUNA) Collapse

Su Zhu sees a fraudulent conveyance case in FTX and DCG while on the run from liquidators.

A human wearing an astronaut suit walking on the moon next to three arrows depicting Three Arrows Capital
  • Su Zhu emerges on Twitter to blame Digital Currency Group for the Terra Luna fiasco.
  • Teneo, the liquidation company appointed by Singapore Court, retrieved $35.6M from 3AC.
  • Both founders of 3AC came back onto the Crypto Twitter scene shortly after FTX’s collapse.

Su Zhu, one half of the Three Arrows Capital (3AC) founder duo, recently took to Twitter to offer his take on the Terra (LUNA) collapse, which also took the once highly-successful crypto hedge fund out of the game.

Previously, both founding members of 3AC, Zu Shu and Kyle Davies, condemned FTX’s Sam Bankman-Fried for attempts to maliciously liquidate positions and conspiring with sister company Alameda Research.

DCG and FTX Conspired to Destroy Terra (LUNA)?

Su Zhu didn’t stop with FTX – he also alleges Digital Currency Group (DCG) to have been in cahoots with the disgraced SBF to bring down Terra (LUNA) and unpeg Lido Staked Ether (stETH) in July.


The Founder of the now-defunct crypto hedge fund also claims that DCG capitalized on 3AC’s breakdown. Interestingly, Su Zhu referenced the 3AC and Babel Hedge Fund bankruptcy as something that could have been “calmly restructured.”

Indeed, the on-chain data reveals three large transactions from stETH to FTX. These transactions sum up to a whopping 235,227 stETH, which equaled $347 million that day.

According to on-chain analytics tool LookOnChain, similar transfers from stETH to FTX were made on July 8th, which caused the depegging of Lido Staked Ether (ETH), seeding even more panic in the post-Terra crypto crisis.

Liquidators on Lookout for 3AC

In December, Teneo, the liquidator company appointed by the Singapore High Court, managed to retrieve $35.6 million from 3AC in varying assets in Singaporean banks. Currently, the two liquidators, Crumpler and Farmer, are trying to allocate the infamous “MuchWOW” yacht, which was named in honor of Dogecoin (DOGE).


Kyle Davies and Su Zhu ghosted the liquidators on Zoom several times, thus making them issue subpoenas on Twitter, as the out-of-the-view founders cannot be located. However, according to the self-proclaimed “Perpetual Optimist” Su Zhu’s Twitter, the embattled crypto entrepreneur currently resides in Dubai, UAE.

On the Flipside

  • Because of the nature of these transactions, it’s hard to prove that the aforementioned blockchain addresses belong to Sam Bankman-Fried.
  • The founders of Three Arrows Capital (3AC) ditched their own office in Singapore and have been on the run for nearly half a year.
  • In September 2022, 3AC reclaimed $45 million from Convex Finance and Curve.

Why You Should Care

The Terra (LUNA) collapse in May 2022 had a domino effect on the whole crypto market. After FTX went bankrupt, allegations emerged that the corrupt SBF practiced insider trading on a regular basis, among other charges.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Tadas Klimasevskis

Tadas Klimaševskis is a Lithuanian journalist at DailyCoin, specializing in covering the lighter side of the crypto industry such as memecoins and pop culture in the metaverse. He has experience as a music artist, English language teacher, and freelance writer, and uses his creative writing skills to summarize valuable information in his work. He is also a strong believer in the potential of blockchain and spends his free time listening to music, traveling, and watching basketball games.