Three Arrows Capital’s Su Zhu Claims FTX Leaked Their Trading Positions
Su Zhu has claimed that the FTX office in Hong Kong leaked Three Arrows Capital’s trading positions ‘throughout the year’, hinting that the exchange could have had a hand in the hedge fund’s downfall.
The backend trading activities of FTX and Alameda Research are slowly being revealed on Twitter.
In a recent tweet, Su Zhu, the co-founder of bankrupt hedge fund Three Arrows Capital, claims that ‘Clement’ from the Hong Kong office of the FTX exchange leaked the hedge fund’s trading positions and account details ‘to many people throughout the year.’
He added that the same people who received the vital trading positions are now looking for Clement after FTX’s collapse.
Mr Zhu’s comments hint that the team at the FTX crypto exchange might have had a hand in the collapse of the Three Arrows Capital hedge fund earlier this year.
Su Zhu and Kyle Davies Suddenly Reappear on Twitter After FTX Collapsed
To note is that Su Zhu has been silent on Twitter for almost four months due to Three Arrows Capital filing for bankruptcy after its insolvency in July. His silence on social media has also been in line with reports that he fled Singapore and was possibly in Dubai as creditors and bankruptcy proceedings began.
Similarly, fellow co-founder of Three Arrows Capital, Kyle Davies, has also reemerged on Twitter after going silent in July. His most recent tweet also hints that Alameda Research had a hand in the collapse of their hedge fund.
Su Zhu Had in 2019 Questioned Whether Alameda Research Was ‘Legit’
Over the weekend, crypto Twitter community member @sumfattytuna leaked screenshots of what they claimed to be Telegram chat group conversations in which Su Zhu questioned the legitimacy of Alameda Capital. The screenshots showed a Telegram user, who has since deleted their account, questioning why Alameda Research was borrowing $200 million at a high-interest rate with $5 million in equity.
I Gave Up Fudding, Moved Trading to FTX and Binance — Su Zhu
In a follow-up Twitter thread, Su Zhu explained that after questioning Alameda’s financing, he was continually ‘bashed nonstop for two months.’ Thus making it difficult for Three Arrows Capital to do business.
He decided to share the information he had with the crypto publication The Block, but ‘in the end, Dudas squashed the article, and later became the biggest SBF shill in all media.’
Su Zhu admits that he eventually gave up trying to bring to light the questionable financial dealings of Alameda Research.
“I gave up fudding, but didn’t use them. In mid-2021, after the China ban (we were the largest trader on Huobi and Okex derivs) we moved trading to FTX+Binance. FTX courted us w v generous terms, and after I saw big VC backed rds, I assumed someone there did DD and they must’ve grown up.” he Tweeted.
~By John P. Njui~
