Three Arrows Capital\u2019s co-founder Zhu Su on Tuesday criticized FTX and Alameda Research for using lenders\u2019 money to bailout them out. Zhu Su also pointed out that Sam Bankman-Fried and BlockFi accused Three Arrows Capital<\/a> of \u201cdouble pledging collateral\u201d and manipulated the crypto market by making customers wire transfers to FTX through trading firm Alameda Research.<\/p>\n Three Arrows Capital co-founder Zhu Su in a series of tweets<\/a> on November 29 blasted FTX and Alameda for manipulating the crypto market. FTX and Alameda have reportedly borrowed funds from crypto lenders including BlockFi and Voyager to actually bailout them.<\/p>\n \u201cWhat is the intent behind getting a \u201cbailout\u201d from a firm that actually net borrows from you, in order to keep accepting client deposits for four more months?\u201d<\/p>\n<\/blockquote>\n Zhu Su pointed out that FTX and BlockFi used third-tier media to accuse Three Arrows Capital of \u201cdouble pledging collateral\u201d following the bankruptcy filing by Three Arrows Capital in July. He attacked FTX and Alameda again after BlockFi filed for Chapter 11 bankruptcy<\/a>.<\/p>\n Moreover, BlockFi is a creditor of FTX that lend money to Alameda. Then, Alameda lend money to Emergent, which is SBF\u2019s personal holding company that purchased Robinhood shares<\/a>. On November 9, Robinhood shares were pledged by Emergent as collateral to guarantee BlockFi\u2019s FTX loan, which was used for bailing out BlockFi.<\/p>\n Zhu Su also claimed that the same manipulation was seen during the Voyager auction in July. Alameda could not even repay their own loan to Voyager. \u201cThey bailed out their own lenders with the same money that those lenders lent to them.\u201d<\/p>\nThree Arrows Capital Co-Founder Blasts FTX and Alameda<\/h2>\n
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How Banks Played Part in the Manipulation<\/h2>\n
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