LayerZero CEO alleges Kyle Davies offered ‘better rates’ in a bid to rescue 3AC before bankruptcy
@sanor016
Bryan Pellegrino, LayerZero’s co-founder and CEO, has publicly accused Three Arrows Capital (3AC) co-founder Kyle Davies of trying to pressure the company to move its entire treasury to the now-defunct crypto hedge fund right before its bankruptcy.
These allegations surfaced after Pellegrino responded to a post on X. In his response, he claimed Davies offered “better rates than other borrowers” in a desperate attempt to salvage the hedge fund before its downfall.
Pellegrino Pellegrino sharply criticized Davies for his deceitful behavior. “Getting liquidated is one thing. Lying and exploiting…is another,” he wrote.
The recent allegations follow Davies’s appearance on a March 19 episode of the Unchained Podcast. In the discussion, Davies didn’t seem remorseful about 3AC’s bankruptcy.
He laughed off the notion that his failure was something he deeply regretted, implying that bankruptcies are very common within the crypto industry.
Davies maintained that his professional reputation is unblemished, regardless of the serious criticism he has received for his conduct before and after to the downfall of 3AC.
He revealed that he was meeting with the fund’s creditors and had also consulted with Teneo, the 3AC liquidator.
Davies remained optimistic about the situation, noting that they might soon reach a settlement fair for all parties.
#BNBChain
On Dec. 21, Teneo obtained a court order in the British Virgin Islands to freeze $1.14 billion in Davies and Zhu’s assets. The liquidator is trying to recover the $3.3 billion that they owe creditors after 3AC went bankrupt.
The firm specifically targeted Zhu and Davies for $1.3 billion, accusing them of recklessly leveraging investor funds after the hedge fund became insolvent.
