CEO of LayerZero: 3AC management tried to lure out the treasury of the project shortly before the collapse
The CEO of LayerZero stated that the management of 3AC tried to extort the entire treasury from the project immediately before the bankruptcy of the company. The co-founder of the hedge fund, Kyle Davis, offered to transfer the available funds to the company at a high percentage.
Brian Pellegrino, CEO of LayerZero, accused Kyle Davis, co-founder of the Three Arrows Capital hedge fund, of trying to lure out the project's coffers shortly before the firm's collapse.
According to the entrepreneur, representatives of 3AC contacted him a few days before the bankruptcy. Davis, in particular, offered to place the company's funds in hedge fund accounts at an abnormally high interest rate.
I would agree with this 100% and would be in your corner except for the fact that you tried to get us to give you our entire treasury promising better rates than other borrowers as a last gasp effort just days before you blew up.
— Bryan Pellegrino (@PrimordialAA) March 21, 2024
Pellegrino claims that Three Arrows Capital was already insolvent by that time and the co-founders of the firm were aware of what was happening. The management hid this fact, he stressed. The entrepreneur said that liquidating a company is one thing, but "deceiving friends and exploiting people around" is quite another.
The CEO of LayerZero announced his statement in response to Davis' post, in which he once again refused to apologize to investors who lost billions of dollars. On his account on the social network X (formerly Twitter), he published a post in which he stressed that he would never regret what happened.
"We were traders who firmly believed that going up was forever. And we still believe it. The lenders decided to put the funds of low-risk clients in a highly volatile sector. Pointing a finger at someone is for cowards," Davis said.
Earlier, the co-founder of Three Arrows Capital gave an interview on one of the YouTube podcasts. He stated that he does not feel regret over the collapse of the company. The entrepreneur also intends to avoid imprisonment, which is why he does not plan to return to Singapore and renounced his US citizenship.
Source: https://incrypted.com/rukovodstvo-3ac-pytalos-vymanyt-u-layerzero-kaznu-proekta-nezadolgo-do-kraha/
