LayerZero CEO Accuses Kyle Davies of Seeking Full Treasury Allocation Before 3AC’s Collapse

cryptonews.com:

LayerZero co-founder and CEO Bryan Pellegrino accused Kyle Davies, co-founder of the now-defunct Three Arrows Capital (3AC), of trying to persuade his firm to transfer its entire treasury shortly before the liquidation of 3AC on March 21.

Pellegrino made the allegation in an X post as a response to Davies’ comment on a podcast.

Pellegrino alleged that Davies tried to get the entire treasury of LayerZero, “promising better rates than other borrowers as a last-gasp effort.”

This revelation came to light when the co-founder of the defunct hedge fund refused to apologize to investors for the collapse of 3AC in an episode of the Unchained YouTube interview podcast on March 19.

The LayerZero CEO further claimed that 3AC resolved to borrow funds from various firms, even though the firm knew it was financially unable to pay back the loans amid private preparation for its liquidation.

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 criticized Davies for misleading and taking advantage of friends, associates, and partners, including Arthur Hayes, the co-founder of BitMex exchange.

While Pellegrino’s accusations seem deep-rooted in betrayal and soured friendship, he has gained support from many crypto enthusiasts and case observers who believe Davies borrowed funds with false claims.

You borrowed money with fraudulent claims. Thats simple financial fraud, and in a common sense ethical context…simple stealing. Losing other peoples’ money isn’t inherently unethical or illegal. But it’s both when you