Kyle Davies, co-founder of Three Arrows Capital, attempted to lure LayerZero to allocate the project's entire treasury to the now-defunct crypto hedge fund just days before it imploded, LayerZero Co-Founder and CEO Bryan Pellegrino alleged on X Thursday. 

Davies, who refused to apologize to investors for billions lost in 3AC’s bankruptcy in a recent podcast interview, reiterated his unapologetic view on the hedge fund’s collapse in an X post Thursday. “We were traders who devoutly believed in up only forever. Still do. Lenders chose to gamble their own low risk clients funds on a high risk thesis,” Davies wrote.

Pellegrino threw his allegation in a reply to that X post, claiming that Davies promised the interoperability protocol LayerZero “better rates than other borrowers" in a …