Three Arrows Capital wants to increase its claim on FTX to $1.5B
Liquidators of defunct crypto hedge fund Three Arrows Capital (3AC) are seeking to improve their claim on FTX, which has increased from $120 million to $1.53 billion.
According to Bloomberg , 3AC liquidators have dropped $1.33 billion in debt by offloading their assets on the FTX platform two weeks before the hedge fund collapsed. The hedge fund said the transactions were “unavoidable and unfair” and harmed 3AC's creditors.
3AC contends that the liquidations should be voided, accusing FTX of undervaluing the transactions and breach of trust and contract.
The bankrupt hedge fund also claims that FTX was late in providing the necessary information, forcing 3AC to analyze raw data to calculate losses. As a result, 3AC said it could confirm the amount of liquid only in August.
FTX, however, responded by saying that an unnamed individual connected to 3AC had begun investigating the property. FTX has not yet determined the identity of the individual. The court will hold a hearing on November 20 to discuss 3AC's request to amend the claim.
3AC Liquids seeks $1.3 billion from Terraform Labs
Beyond FTX, 3AC is also pursuing claims against another collapsed crypto firm, Terraform Labs. In the year On August 9, 3AC liquidates a $1.3 billion claim in Terra's bankruptcy case in the United States Bankruptcy Court for the District of Delaware.
The liquidators misled Terra 3AC about the stability of crypto assets in the Terra ecosystem. This includes the hacked algorithmic stablecoins TerraUSD (UST) and Luna (LUNA).
According to the liquidators, Terra promotes these tokens in ways that artificially inflate their value, prompting 3AC to invest heavily. Liquidators now seek damages for direct purchases of UST and LUNA.
RELATED: 3AC-Linked Wallet Buys NFT for $59K with 3-Year Discount
FTX charges to return crypto
FTX, which filed for bankruptcy two years ago, stepped up its recovery efforts in November to reclaim its assets.
In the year On November 8, FTX's bankruptcy estate filed a $100 million lawsuit against SkyBridge Capital and its founder, Anthony Scaramucci. FTX aims to recoup the money former CEO Sam Bankman-Fried spent on investment deals with Scaramucci and Skybridge by 2022.
On November 10, FTX filed a lawsuit against the crypto exchange Binance and its former CEO Changpeng Zhao. FTX Bankruptcy Estate Says Bankman-Fried's $1.75 Billion Purchase Agreement With Binance Is Fraudulent, FTX Bankruptcy Claims
In the year On November 11, FTX's trading arm, Alameda Research, filed a lawsuit against Waves founder Alexander Ivanov in an attempt to recover crypto assets. According to court filings, the company wants to get nearly $90 million in crypto from Waves.
Magazine: ‘Hong Kong FTX' victims win lawsuit, bankers sack stablecoins: Asia Express
