TL;DR
- Three Arrows Capital (3AC) seeks to increase its claim against FTX from $120 million to $1.53 billion, alleging improper liquidation of assets.
- 3AC also filed a $1.3 billion claim against Terraform Labs, arguing that it was misled about the stability of the UST and LUNA tokens.
- FTX is conducting multiple lawsuits to recover assets, including legal actions against SkyBridge Capital, Binance, and Waves.
Three Arrows Capital (3AC), a bankrupt cryptocurrency hedge fund, has filed a request to increase its claim against FTX, raising it from $120 million to $1.53 billion.
3AC’s liquidators argue that FTX acted improperly by liquidating their assets on the platform to cover a $1.33 billion debt just two weeks before the fund collapsed. According to the firm, this liquidation harmed its creditors, as they consider the transactions to have been unfair and believe they should be invalidated.
Representatives of Three Arrows Capital maintain that FTX not only acted inappropriately but also undervalued their assets and, in doing so, breached both the trust placed in them and contractual terms. Additionally, they accuse the exchange of withholding important information for months, which complicated 3AC’s ability to accurately calculate its losses. It was not until August of this year that the fund was able to determine the exact amount liquidated, which, they claim, was due to FTX’s lack of cooperation in providing detailed and processed data.
For its part, FTX has defended itself, arguing that the liquidation of assets was initiated by an unidentified individual connected to Three Arrows Capital. So far, the identity of this person has not been confirmed. To resolve the dispute, the court has scheduled a hearing for November 20, where 3AC’s motion to amend its initial claim will be reviewed and the details of the accusations explored.
Three Arrows Capital Sues Terraform Labs
On the other hand, Three Arrows Capital has also filed an additional $1.3 billion claim against Terraform Labs, another company in the crypto industry that also collapsed suddenly. The lawsuit, filed in the Delaware Bankruptcy Court, alleges that Terraform Labs misled 3AC regarding the stability of its TerraUSD (UST) and Luna (LUNA) tokens, which plummeted unexpectedly. 3AC claims that Terraform’s promotions artificially inflated the value of these assets, leading them to make substantial investments that resulted in significant losses.
The Situation of FTX
Meanwhile, FTX has also intensified its own legal actions to recover assets, filing lawsuits against SkyBridge Capital and its founder Anthony Scaramucci, the cryptocurrency exchange Binance, and Waves founder Aleksandr Ivanov. These proceedings aim to recover funds and assets allegedly lost in agreements and transactions that, according to FTX, were fraudulent or mismanaged in an insolvency context
