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Three Arrows Capital seeks to increase its claim amount against FTX to $1.53 billion

Three Arrows Capital seeks to increase its claim amount against FTX to $1.53 billion

Bitget2024/11/14 08:59

On November 14, the liquidator of the now-defunct crypto hedge fund Three Arrows Capital is attempting to amend its claim against FTX, increasing its claim amount from $120 million to $1.53 billion. The liquidator for Three Arrows Capital alleges that two weeks before the hedge fund's collapse, FTX liquidated and seized their assets on the platform to settle a debt of $1.33 billion. The hedge fund claims these transactions were "avoidable and unfair," causing harm to creditors of Three Arrows Capital. They believe that the liquidation should be invalidated, accusing FTX of undervaluing trades and breaching trust and contract.

Three Arrows Capital also alleges that FTX delayed providing necessary information, forcing them to parse raw data in order to calculate losses. As such, they could only confirm the amount for liquidation in August. However, FTX responded by saying an unnamed individual associated with Three Arrows Capital initiated asset liquidation; it has yet not confirmed this person's identity. A court hearing will take place on November 20th discussing motions by Three Arrow Capitals' amendment claims.

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