3AC has increased its $120 million claims from FTX to $1.5 billion over a liquidation made by the defunct exchange two weeks before the hedge fund collapsed.
Liquidators working to make Three Arrows Capital (3AC) whole have amended their FTX claims by tremendous proportions. The defunct crypto hedge fund initially filed for claims worth $120 million from the defunct crypto exchange. However, it is now asking for $1.5 billion, according to a Bloomberg report.
3AC liquidators claim that FTX liquidated and seized $1.33 billion worth of assets to settle the hedge fund’s debt to the exchange. Bloomberg mentioned that 3AC feels FTX’s forceful actions were “avoidable and unfair” and caused damages to its creditors. Thus, the hedge fund’s liquidators want the FTX liquidations to be reversed because FTX undervalued the transaction and indulged in a breach of trust.
Simultaneously, 3AC is also accusing FTX of not providing adequate information during this fiasco, forcing it to work with raw data to compute losses. The hedge fund brought this up as the reason for calculating the losses only by August. FTX has claimed that an unknown person from 3AC initiated the liquidations—the exchange has yet to identify the individual from 3AC. The court will listen to the hedge fund’s claims and amend requests on November 20.
3AC Is Also Going After Terraform Labs
3AC is also going after another collapsed, infamous firm in court—Terraform Labs. The hedge fund filed a $1.3 billion claim from Terraform amidst the latter’s liquidation hearings in August. 3AC claims that Terraform misled it by lying about the stability of its assets, including the TerraUSD stablecoin (UST) and the Luna (LUNA) token.
It brought the claim to the United States Bankruptcy Court for the District of Delaware, claiming Terraform’s promotion of these tokens revolved around artificially inflating their value to get 3AC to invest. Thus, the liquidators are asking for damages directly linked to these investments occurring due to manipulative practices.
FTX is also in full swing filing claims against numerous counterparties it dealt with when before collapsing. It has filed over 20 cases in the last month, ranging from exchanges to crypto protocols. For instance, it recently filed a $1.8 billion suit against Binance and its CEO Changpeng ‘CZ’ Zhao for a transfer of $1.76 billion made “fraudulently” by ex-FTX CEO Sam Bankman-Fried to Binance and its executives.
FTX has also wants $11 million from Crypto.com, which is frozen under an account belonging to Alameda Research. It filed a suit against Skybridge Capital and founder Anthony Scaramucci for bad investments made by SBF.
