Three Arrows Capital Seeks to Increase Claim Against FTX to $1.5 Billion
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
Three Arrows Capital (3AC), a bankrupt crypto hedge fund, is attempting to amend its claim against defunct cryptocurrency exchange FTX, increasing the amount from $120 million to a staggering $1.5 billion.
Three Arrows Capital’s New $1.5 Billion Claim Against FTX
According to Bloomberg, FTX unjustly liquidated 3AC’s assets, valued at over $1.3 billion, just weeks before the hedge fund’s collapse, allegedly to settle a debt.
The liquidators of the defunct hedge fund, Three Arrows Captial, have increased their claim against FTX, increasing it from $120m to $1.53bn 📈📈
3AC’s liquidators allege that before the hedge fund collapsed FTX liquidated and took their assets 🤔
— CryptoSavingExpert ® (@CryptoSavingExp) November 14, 2024
3AC liquidators claimed that this liquidation was both “avoidable and unfair,” contending that FTX’s actions caused harm to the hedge fund’s creditors. 3AC accuses FTX of undervaluing the liquidated assets and violating contractual obligations.
Furthermore, the liquidators argued that FTX failed to provide necessary data in a timely manner, forcing Three Arrows Capital to manually analyze raw data before arriving at the losses reported in August. This delay, the company argued, exacerbated 3AC’s financial challenges.
In response, FTX stated that the liquidation was conducted by an unidentified person connected to Three Arrows Capital but has not disclosed further details. A court hearing scheduled for November 20 will address the hedge fund’s motion to revise the claim, marking a crucial moment in the dispute.
FTX’s Efforts to Recover Crypto Assets
FTX has intensified efforts to reclaim funds in its bankruptcy process. This month alone, the defunct crypto exchange has filed several high-profile lawsuits following a court ruling that ordered FTX to pay $12.7 billion in relief to its customers.
On November 8, FTX’s bankruptcy estate initiated a $100 million lawsuit against SkyBridge Capital and its founder, Anthony Scaramucci, as the estate alleges that its former CEO, Sam Bankman-Fried, improperly used funds in investment deals involving Scaramucci’s firm, SkyBridge, during 2022.
🚨🇺🇸 The FTX bankruptcy estate is suing Anthony Scaramucci and SkyBridge Capital to recover funds that the former CEO spent on sponsorship and investment deals in 2022. pic.twitter.com/05JceNmc5E
— Neel (Crypto Jargon) (@Crypto_Jargon) November 10, 2024
On November 10, FTX’s bankruptcy estate also filed a lawsuit against Binance and its former CEO, Changpeng Zhao. This is amongst the myriad of lawsuits and class actions faced by Binance and Changpeng Zhao alone this year.
According to FTX, Bankman-Fried’s $1.75 billion repurchase deal with Binance was fraudulent, given FTX’s insolvency at the time.
Alameda Research, FTX’s trading division, also filed a separate lawsuit against Waves founder Aleksandr Ivanov on November 11, seeking to recover approximately $90 million in crypto.
