Three Arrows Capital’s Co-founder Claims FTX & Alameda Had a Hand in 3AC Bankruptcy

Azalea.

Nov 17, 2022•2 min read

Three Arrows Capital’s Co-founder Claims FTX & Alameda Had a Hand in 3AC Bankruptcy

Five months after Three Arrows Capital (3AC) filed for Chapter 15 Bankruptcy in New York, co-founder Kyle Davies added his thoughts on this unfortunate event of the company.

Kyle Davies stated on CNBC:

“As their biggest client, we, 3AC, were hunted and our positions liquidated”.

According to Kyle, although FTX and Alameda are different firms, they were “sitting in the same room” and it’s becoming clear that they shared information. He believes there is a clear segregation between an exchange and any kind of proprietary trading firm.

Kyle suggests that FTX employees shared the details of 3AC’s positions with traders at Alameda and then used this information to trade against them and force a stop-loss order. According to him, recent employees of FTX are even bragging about hunting and liquidating 3AC’s position, before the collapse also fell on FTX in November, 2022. FTX filed for bankruptcy protection after a run on its FTT token and the revelation that it had lent billions to its sister company Alameda Trading.

Explore: Binance & FTX Exchange | What Happened These Days?

Su Zhu & Kyle Davies, the founders of 3AC.

Kyle ironically admitted he did not think FTX’s Sam Bankman-Fried was legitimate until he saw other reputable firms backing him. Based on that background, with no new info, he changed his mind and began working with FTX.

The co-founder of the crypto hedge fund says they are looking forward to justice for 3AC, as well as for the people who have lost their life saving because of this occurrence.

"We will find out the truth" - Kyle Davies emphasized.

About GameFi.org

GameFi.org is a one-stop destination for web3 gaming. We aim to build digital communities and manage virtual economies for mainstream adoption. GameFi.org offers a suite of solutions covering the entire games and gamified projects' lifecycle, following a vision of one digital platform, and one virtual identity requiring zero blockchain knowledge. Visit https://gamefi.org/ for more information.