Su Zhu, the co-founder of collapsed 3 Arrows Capital (3AC), has reacted to the ongoing proceedings of the case against Sam Bankman-Fried (SBF) after the crash of his exchange FTX. The 3AC co-founder shared on Twitter that the FTX founder’s strategy has backfired and he does not have an optimistic way out as things changed as opposed to his expectations.
3AC’s Su Zhu Asserts SBF’s Plan Backfired
While giving his opinion on the matter, Zhu noted that the claims of FTX will take several years to be settled taking into account the repayments to the crypto exchange’s creditors with FTX funds. As per Zhu, the chief focus of the Bankman-Fried in the present situation would be to minimize the sentence. He added that comparing the FTX collapse with the Madoff analogy is not right.
Zhu mentioned that in the case of Madoff’s contagion a mass indictment of up to fifty people was carried out while FTX is different from that. 3AC co-founder then discussed the possible moves that can be made by Bankman-Fried at present. He noted that SBF does not have the option to turn on the staff of the crypto exchange because the existing pleas of the staff members have likely eliminated that possibility.
In his words, the only other thing that SBF can move toward is to blame the other cryptocurrency platforms in the United States that are nearest to his conspiracies. While elaborating on this, Zhu proposed that the strategy of the FTX founder was not well-established. According to him, Bankman-Fried thought that the exchange’s insiders would not submit guilty pleas and fled to the Bahamas.
Su Zhu Claims SBF Did Not Expect Collaborators’ Guilty Pleas
Nonetheless, he added, the plan backfired because it was ill-conceived. As Zhu puts it, SBF made another move by tweeting that Binance CEO Changpeng Zhao won the round. Zhu asserted that the FTX founder was unable to witness that the tactic of winning favours against rival parties has become obsolete and thus remained alone.
Zhu was of the view that Gary Wang and Caroline Ellison’s guilty pleas disappointed Bankman-Fried to a great extent. A few days back, the subpoena issuance for Kyle Davies and Su Zhu (the 3AC co-founders) was authorized by a federal bankruptcy court in the ongoing bankruptcy case of the crypto hedge fund.
