The people who are winding up the now-defunct crypto hedge fund Three Arrows Capital (3AC) want to raise their claim against FTX from the original $120 million to a huge $1.53 billion. 3AC says that FTX sold off its assets to pay off a $1.33 billion loan just two weeks before 3AC went bankrupt. The liquidators say that these acts were “unfair and avoidable,” and that they caused a lot of harm to 3AC creditors.
3AC says FTX misjudged the value of the stolen goods and broke both the trust and the contract. The hedge fund also says that FTX withheld important data that was needed to figure out how much money was lost, which 3AC had to use only raw data to figure out. It wasn’t until August that the fund was able to prove this.
In reaction, FTX said that the liquidation process was started by an unknown person with ties to 3AC. On November 20, the case will be heard in court, where 3AC will ask for leave to raise its claim.
In search of Terraform Labs
Along with its disagreement with FTX, 3AC is also going after Terraform Labs, another crypto company that went out of business. 3AC put in a $1.3 billion claim in August in Terra’s bankruptcy processes, saying that Terraform Labs lied to them about how reliable its crypto assets, such as TerraUSD (UST) and Luna (LUNA), were. The liquidators say that these tokens were artificially inflated, which caused 3AC to spend a lot of money and then lose a lot of money when the tokens crashed.
FTX is stepping up its recovery efforts.
FTX filed for bankruptcy two years ago and is now actively trying to get back assets through a number of cases. This month, FTX’s bankruptcy estate sued SkyBridge Capital and its founder, Anthony Scaramucci, for $100 million, asking them to return investments made by Sam Bankman-Fried, who used to be CEO of FTX.
With these cases, FTX is stepping up its efforts to get its estate’s finances back on track. At the same time, Three Arrows Capital is still fighting for compensation from both FTX and Terraform Labs.
