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Zhu Su announces DCG bankruptcy reorganization: DCG and FTX are both on the same path, filling the financial gap with one hand replacing the other.

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Zhu Su announces DCG bankruptcy reorganization: DCG and FTX are both on the same path, filling the financial gap with one hand replacing the other.

After the founders of the Gemini exchange and Digital Currency Group (DCG) each had their say, Zhu Su, the founder of bankrupt venture capital firm 3AC, revealed that DCG is similar to FTX, as it was already insolvent at the time of 3AC's bankruptcy, merely covering up the funding gap on the surface.

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Zhu Su pointed out that DCG conspired with FTX to target LUNA and stETH, making huge profits, but suffered heavy losses later due to Three Arrows Capital's bankruptcy. Babel Finance and other companies involved in GBTC also faced similar consequences.

DCG could have chosen to file for bankruptcy at the time, but instead came up with a magical convertible note to cover the funding gap:

It's like a kid losing at poker and saying, "It's okay, my dad will pay you, I'll keep playing." But the dad is actually yourself.

Zhu Su believes that DCG's situation is similar to FTX's, as they have been heading in the wrong direction for the past few months, attacking 3AC in various ways, and no one is surprised at how Genesis managed to fill the huge funding gap.

In fact, DCG and FTX are the same, spending six months absorbing more user deposits, hoping for a market rally, but ultimately unable to meet their obligations.

He also pointed out that most crypto bigwigs are well aware of the close relationship between DCG founder Barry Silbert and SBF. SBF was a former board member of Genesis, making it the first platform for SBF to use FTT as collateral for loans.

Zhu Su predicts that Genesis creditors will push DCG into bankruptcy proceedings in the coming days and further recover remaining assets, possibly directly demanding compensation from Barry Silbert, rather than waiting for lengthy litigation.