Su Zhu, the man behind Three Arrows Capital, has put forth alleged a rather concerning conspiracy regarding Terra’s collapse in mid 2022. The conspiracy involves bankrupt crypto exchange FTX and the Digital Currency Group. 

In a Twitter thread on 3 January, Zhu claimed that both firms coordinated an attack against Terra’s native token LUNA and stETH, which led to a catastrophic depegging. These events culminated in the downfall of Zhu’S 3AC, which is now a defunct crypto hedge fund. 

Su Zhu claimed that the Digital Currency Group conspired with Sam Bankman-Fried’s FTX to attack LUNA and stETH. He further alleged that both firms netted a “fair bit” in this process. According to him, both firms faced substantial losses following the bankruptcy of 3AC and Babel Finance. 

(by Suzuki Shillsalot)