JAKARTA 2022 is the year that rocked the crypto industry the most. Starting with the collapse of Terra (LUNA) whose value fell by more than 99 percent in May 2022. The drop in LUNA has eliminated and investors of US$40 billion (equivalent to Rp624 trillion) in just one week.
LUNA's fall dragged major players in the crypto industry including Three Arrows Capital, Celsius, and others, into bankruptcy. Recently, the founder of Three Arrows Capital, Zhu Shu, revealed an important actor behind the destruction of Terra LUNA.
In a statement, Zhu Su blamed the Digital Currency Group (DGC) which is the holding company Grayscale Investment and Genesis Trading. Su accused DCG of being an important actor behind the collapse of Terra (LUNA) in May last year.
Not only that, DCG is claimed not to be alone in bringing down LUNA. DCG conspired with Sam Bankman-Fried's crypto trading company FTX. Even though his own company went bankrupt, Zhu Su considered that DCG and FTX also suffered heavy losses.
The loss dragged the bankruptcy of crypto lending company Babel Finance, a crypto company linked to Grayscale. Founder 3AC added that DCG could work with them in the restructuring process.
Fraud Criminal
According to a Coingape report, the collapse of FTX has caused a major liquidity crisis for DCG crypto loan subsidiary Genesis Global. But Zhu Su believes that Genesis was already in trouble during Terra's collapse.
He alleges that DCG and FTX took the 3AC fall as an opportunity to "insulate" the crypto community for months and use several methods to attack them. This is how Genesis fills its holders by taking deposits six months after Terra's collapse, and hopes the market will rise. Zhu Su calls it a criminal scam.
"The value of DCG is 0, criminal fraud, ftx creditors also have cases for fraud transport on Alameda's return to Genesis 8). Most OG are well aware of how close Barry and SBF were from the start (SBF was on the Genesis board, they gave him the first FTT-backed loan)," Zhu Su said.
Furthermore, the founder of Three Arrows Capital predicts that Genesis will most likely go bankrupt in the coming days. Creditors are waiting that Barry Silbert helps them cash out in an easy way rather than taking legal action to the Department of Justice (DoJ). A similar statement was also made by the founder of Terra LUNA, Do Kwon.
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