The hedge fund co-founder stated this was doable due to the shut relationship between Sam Bankman-Fried and DCG CEO Barry Silbert. In line with Zhu Su, SBF was on the board of embattled DCG’s subsidiary, Genesis, which later granted the primary FTT-backed mortgage.
Over the previous yr, Genesis acquired billions of FTT tokens from Alameda Analysis and FTX, each of which have collapsed.
Zhu added that DCG took substantial losses from the chapter of corporations concerned in its Grayscale’s Bitcoin Belief (GBTC). Nevertheless, as an alternative of restructuring its companies, DCG employed misdirection techniques that allowed it to maintain working whereas bancrupt and hoping the market would get better.
“[DCG] fabricated a left pocket proper pocket callable promissory observe that magically crammed the opening. This is sort of a child shedding at poker and saying, “I’m superb, my dad pays you, let me hold enjoying,” but when your dad is definitely your self.”
The bankrupt hedge fund co-founder stated, “DCG worth is 0.” He added that FTX collectors have a case of fraudulent conveyance on Alameda’s capital returns to Genesis. He claimed:
“Genesis collectors will push it into chapter 11 and take remaining dcg property in coming days both manner, they’re seemingly demanding Barry pays again his cashouts the straightforward manner as an alternative of ready for a DoJ felony case with restitution punishments.”