QUICK TAKES: 

  • 3AC co-founder Su Zhu is attempting to regain popularity on Twitter by siding against FTX 

  • He accused FTX employees of teaming against him and leaking his company’s positions publically 

  • The employees have since refuted the claims, and Crypto Twitter was not too keen on his return 

Su Zhu, the founder of insolvent hedge fund Three Arrows Capital (3AC) appears to be back on Twitter full-time. Ever since issues within the FTX empire started to surface last week, Zhu has been seen actively engaging with his huge Twitter audience, following months of absence from the social networking site. Interestingly, the exec is using this opportunity to clear his name and that of his company, after becoming the most hated man on Crypto Twitter earlier this year.

Zhu has been especially active on Twitter in the last couple of days, making leaks that could incriminate FTX, Alameda Research, and their founder Sam Bankman-Fried further. He was also seen resharing tweets that were critical of these entities. Notably, many of these tweets have also been propping up 3AC, whose implosion in June had bowled over several lending platforms. Although, 3AC had significant exposure to the FTX empire and its native token FTT, which might have added to the fund’s financial woes.

Source: Twitter

3AC’s Su Zhu Extracts Revenge

Nevertheless, he made an explosive revelation earlier today by stating that an FTX HK employee called Clement leaked 3AC’s position on the market and other details to “many people” throughout the year. This could have made liquidating their positions on the fund easier as its performance went under scrutiny. He also pointed fingers at Dan Friedberg, the Regulatory Officer at FTX’s Cryptocurrency Derivatives Exchange.

Wait so Alameda's Dan Friedberg's previous business "Ultimate Poker" was literally looking at clients' hole cards to then steal money from them?

— Zhu Su 🔺 (@zhusu) November 15, 2022

To this, 3AC co-founder Kyle Davies replied,

We were all playing poker against the house, while they looked at our cards, and used our money to bet against us.

Additionally, Zhu re-shared screenshots allegedly taken from Alameda’s Telegram group in January 2019. As per the images, Zhu, who appeared as a “Deleted Account” in the chat, was questioning Alameda’s financials ever since it came into the public eye. He highlighted that Alameda offering a 15% “high return, no risk” on lending “doesn’t really add up.” He further added,

As far as I can tell, this is a highbrow Bitconnect with better social proof. The economics are insane.

FTX Employee Refutes Allegations

The 3AC founder added that post this Telegram conversation, FTX employees incessantly bashed him for the next two months, “making it difficult to even do business.” Zhu said that he approached certain media houses with this evidence, but to no avail. In the end, he “gave up fudding” and joined hands with FTX, he said.

I gave up fudding, but didnt use them. In mid 2021 after the China ban (we were 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 mustve grown up

— Zhu Su 🔺 (@zhusu) November 15, 2022

 

It should be noted that the FTX employees mentioned by Zhu, Jane Tackett, and Ryan Salame, have since refuted these claims. Tackett, who recently left the post of Head of Institutional Sales at FTX, said that he joined FTX 18 months after the conversation in question took place. He further stated that Salame also worked for Circle at the time and only joined FTX five months after the conversation.

“It’s unfortunate to see @zhusu make up stories in an attempt to regain standing in the community,” Tackett said. He even added that he was not in that group chat, and hence wasn’t aware of Zhu’s discussion with Alameda.

If he has screenshots showing me standing up for alameda and trying to help them raise capital during my time as the head of otc sales at a competing desk, i would be very interested in seeing those. Seems a bit far fetched.

— Zane Tackett (@tackettzane) November 15, 2022

After his alleged lie was caught, Zhu proceeded to attack Tackett with unrelated questions, saying it was “irrelevant where you were working.” Notably, as per Tackett, he was at the time working for B2C2, which was one of Alameda’s direct competitors. Nevertheless, Zhu accused Tackett of “shilling FTT literally everyday” while bashing 3AC for missing the opportunity.

“How did the Bahamaian withdrawal thing happen btw?” he further asked the ex-FTX employee.

Cool Story Bro 

Despite the attempted re-branding, Crypto Twitter hasn’t taken too keenly to Zhu’s return. He is being accused of leveraging the current sentiment against FTX to salvage 3AC’s reputation. “Just because the attention is on SBF doesn’t mean u getting away,” one Twitter user said. Many also questioned 3AC’s eventual partnership with Alameda and FTX, which was despite Zhu being suspicious of the company’s motives.

Cool story. pic.twitter.com/uaym9HTpvX

— Avraham Eisenburger (@avr_eisen) November 15, 2022