Sam Bankman-Fried weighed in on the current Three Arrows Capital crisis via Twitter, with the FTX founder and CEO saying it “couldn’t have happened with an on-chain protocol that was transparent.”

Singapore-based crypto investment firm 3AC last week was rumored to be insolvent after allegedly failing to meet margin calls from several lenders, including BlockFi and financial services company Genesis, according to the Financial Times

Researchers also claimed via Twitter that the company took out a $264 million loan with Aave and a $35 million Compound loan. 

The transactions haven’t been confirmed, but several big lenders to 3AC, including crypto exchange BitMEX, have started liquidating their positions, while portfolio companies are distancing themselves from the hedge fund.

Bankman-Fried’s suggestion came in response to a tweet asking industry figures how to “best ensure that a 3AC moment doesn’t happen again.” The CEO said that the top priority wasn’t “making sure no one ever goes under,” but keeping institutional credit transparent to retail investors.

The FTX CEO tweeted “regulation can help here” before following it up with, “so can DeFi,” adding the crisis would not have been possible with transparent on-chain DeFi apps. 

Three Arrows Capital’s founders, Zhu Su and Kyle Davies, were accused of ghosting the public after their social media accounts were inactive for a few days.

Zhu eventually broke his Twitter silence on Wednesday and admitted the hedge fund was having problems, but didn’t elaborate: “We are in the process…

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