Three Arrows Capital’s Su Zhu told Bloomberg on Tuesday that there are still more dominoes left to fall.
In an in-person interview with Bloomberg on Nov. 22, Su Zhu said he disagreed with the notion that FTX’s collapse sets the crypto industry back by five years.
“I think it’s even longer than that — seven or eight years — maybe even longer, if the underlying issues aren’t solved,” he said.
Three Arrows Capital (3AC) filed for bankruptcy in July as a result of getting caught up in the collapse of the Terra ecosystem. Both the hedge fund’s founders Kyle Davies and Su Zhu were largely radio silent after the fund went down – that is until FTX’s insolvency came to light.
Zhu and Davies both took to Twitter to comment on the situation. On Nov. 10. Zhu said he believed it was “widely known” that Alameda was internalizing FTX client liquidations for years.
Davies claimed that FTX and Alameda had been hunting their position. In an interview with CNBC, he asserted that FTX employees had been leaking their positions to the market which led to their liquidations
“We were all playing poker against the house, while they looked at our cards, and used our money to bet against us,” tweeted Davies on Nov. 15.
Market participants bristled at the 3AC founders painting themselves as victims. The Block founder Mike Dudas said in a tweet that has since been deleted, that the two had reappeared on the scene because they are allegedly looking at raising a new fund.
Zhu acknowledged that he is exploring the idea of setting up a new trading entity in the interview with Bloomberg on Tuesday. This fund would invest in both crypto and traditional assets, he said.
“But I don’t think there’s a rush. The dominoes are just beginning to fall. There are many more dominoes,” said Zhu.