ood day everyone,
I hope you are all having a good day, welcome to CryptoGod-1's blog on all things crypto. In this post I will be looking at how 3AC are looking to increase their claim against FTX from 120 million to $1.53 billion.
3AC Liquidators FTX Claim
Just a mere two weeks before Three Arrows Capital's (3AC) collapse the crypto exchange FTX, which itself collapsed and tanked the crypto market in late 2022, liquidated and seized $1.33 billion worth of the hedge fund’s assets to settle debts. This comes as liquidators for the now-bankrupt crypto hedge fund have sought a court approval to raise their claim against FTX. It currently stands at $120 million but they are seeking an increase to $1.53 billion.
This move has come about after allegations emerged that a mere two weeks before 3AC’s collapse FTX had liquidated and seized $1.33 billion worth of the hedge fund’s assets to settle their own debts. This in turn caused damage to 3AC’s creditors as the liquidators claim the transactions were “avoidable and unfair” along with happening in an abrupt manner.
They go on to allege that FTX undervalued the seized assets and breached trust, contract, and fiduciary obligations. Along with this 3AC have also accused FTX of withholding critical information. This in turn left liquidators analysing raw data before confirming the extent of the losses in August. FTC in turn have claimed that an unidentified individual associated with 3AC initiated the liquidations.
The case is set for its next development on the 20th of November when the court will review 3AC’s motion to amend its claim. This legal battle is only one which will involve 3AC as they have been pursuing claims against other collapsed crypto firms. They have filed a $1.3 billion claim against Terraform Labs in Delaware bankruptcy court. They have claimed Terraform misled 3AC about the stability of its ecosystem, resulting in inflated token values and significant 3AC investments.
Have a great day.
Peace. CryptoGod-1.
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