Three Arrows Capital increases FTX claim to $1.5 billion

Liquidators of the defunct crypto hedge fund Three Arrows Capital (CRYPTO:3AC) are seeking to increase their claim against FTX (CRYPTO:FTT) from $120 million to $1.53 billion.

According to Bloomberg, 3AC’s liquidators allege that FTX improperly liquidated 3AC’s assets two weeks before the hedge fund’s collapse to cover a $1.33 billion debt.

The liquidators claim these transactions were “avoidable and unfair,” harming 3AC creditors.

3AC argues that the liquidations were undervalued and breached both trust and contract, stating that FTX delayed providing necessary information.

This delay forced 3AC to analyse raw data to determine losses, which they could only confirm in August.

FTX responded by indicating that an unidentified individual associated with 3AC initiated the asset liquidation, but the identity of this person remains unclear.

A court hearing is set for November 20 to address 3AC’s request to amend the claim.

In addition to the FTX claim, 3AC is pursuing legal action against Terraform Labs.

On August 9, 3AC’s liquidators filed a $1.3 billion claim in Terra’s bankruptcy case in the United States Bankruptcy Court for the District of Delaware.

The liquidators allege that Terra misled 3AC about the stability of its ecosystem, including the failed algorithmic stablecoin TerraUSD (CRYPTO:UST) and token Luna (CRYPTO:LUNA).

The liquidators claim Terra’s promotion of these tokens artificially boosted their value, leading 3AC to make substantial investments.

Damages are now being sought for direct purchases of UST and LUNA.

Meanwhile, FTX, which filed for bankruptcy two years ago, has been actively pursuing asset recovery.

On November 8, FTX’s bankruptcy estate filed a $100 million lawsuit against SkyBridge Capital and Anthony Scaramucci, and on November 10, a lawsuit was filed against Binance and former CEO Changpeng Zhao for a $1.75 billion repurchase deal.

Additionally, on November 11, Alameda Research, FTX’s trading arm, filed a lawsuit to recover $90 million in crypto from Waves founder Aleksandr Ivanov.

At the time of reporting, the Three Arrowz Capitel (3AC) price was $0.001395.