LayerZero

when

Terra

Davies

<p style="text-align: justify">You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/layerzero-ceo-charges-three-arrows-capital-co-founder-with-misleading-conduct" rel="noopener noreferrer nofollow">LayerZero CEO Charges Three Arrows Capital Co-Founder with Misleading Conduct</a><br></p>
<p style="text-align: justify">Bryan Pellegrino, co-founder and CEO of LayerZero, has publicly accused Kyle Davies, co-founder of the now-defunct Three Arrows Capital (3AC), of attempting to deceive him into moving LayerZero’s treasury funds to 3AC before its financial collapse. On a podcast, Davies declined to express regret for the massive investor losses sustained during 3AC’s downfall, instead maintaining his belief in continuous market growth and blaming lenders for risky investments. Pellegrino rebuked Davies’ actions, saying they were a betrayal of trust within the industry.</p>
<h2 id="ceo-confronts-accusations-and-misconduct">CEO Confronts Accusations and Misconduct</h2>
<p style="text-align: justify">Pellegrino’s allegations suggest that Davies operated with disregard for the financial stability of partners, highlighting the risky proposal made to LayerZero despite 3AC’s impending bankruptcy. He emphasized the unethical nature of exploiting professional relationships, contrasting it with the consequences of poor investment outcomes. This follows the tumultuous fallout from the Terra Luna crisis, which ultimately led to 3AC’s insolvency and a Chapter 15 bankruptcy filing in July 2022.</p>
<h2 id="aftermath-and-continuing-legal-challenges">Aftermath and Continuing Legal Challenges</h2>
<p style="text-align: justify">In the wake of 3AC’s collapse, Davies and co-founder Su Zhu attempted to rebound by launching Open Exchange (OPNX), a crypto trading platform that ceased operations in February 2023. Both founders have faced legal actions, with Zhu arrested and detained in Singapore, and Davies evading arrest by staying outside of Singapore. A court in the British Virgin Islands has since frozen over $1 billion in assets connected to Davies and Zhu.</p>
<p style="text-align: justify">Teneo, the liquidator handling 3AC’s case, is seeking to recoup $1.3 billion directly from the two co-founders, citing their handling of investor funds to create substantial leverage prior to the fund’s collapse. The ongoing recovery process highlights the challenges faced by authorities in holding crypto fund managers accountable for their actions.</p>
<p style="text-align: justify">The saga underscores the complexities of trust and ethics in the volatile realm of <a href="https://en.bitcoinhaber.net/crypto-hedge-funds-rally-a-resilient-recovery-in-the-making" rel="noopener noreferrer nofollow">cryptocurrency</a> investments and the repercussions that follow when prominent figures fail to uphold their responsibilities.</p>
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on BH NEWS: </span> <a href="https://en.bitcoinhaber.net/layerzero-ceo-charges-three-arrows-capital-co-founder-with-misleading-conduct" rel="noopener noreferrer nofollow">LayerZero CEO Charges Three Arrows Capital Co-Founder with Misleading Conduct</a></h5>

LayerZero CEO Charges Three Arrows Capital Co-Founder with Misleading Conduct

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