Originally published on: November 14, 2024
The defunct cryptocurrency hedge fund Three Arrows Capital (3AC) is making waves as its liquidators aim to amend their claim against FTX, ramping it up from $120 million to a whopping $1.53 billion.
According to reports from Bloomberg, 3AC’s liquidators are alleging that just before the hedge fund collapsed, FTX liquidated and seized their assets on the platform to settle a massive $1.33 billion debt. The hedge fund is calling these transactions “avoidable and unfair,” claiming they caused harm to 3AC creditors.
3AC is pushing to invalidate these liquidations, accusing FTX of undervaluing the transactions and breaking trust and contract agreements.
Adding to the drama, the bankrupt hedge fund is also pursuing claims against another failed crypto firm, Terraform Labs. Liquidators for 3AC recently filed a $1.3 billion claim in Terra’s bankruptcy case, alleging that Terra misled them about the stability of crypto assets in the system.
Beyond these legal battles, FTX has been busy with its own recovery efforts in November, filing lawsuits against SkyBridge Capital, Binance, and Waves founder Aleksandr Ivanov to reclaim assets.
Stay tuned as the court is set to hold a hearing on Nov. 20 to discuss 3AC’s motion to amend the claim against FTX. With billions of dollars at stake and high-profile players involved, the cryptocurrency world is in for a legal showdown like never before.
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