The liquidators of defunct hedge fund Three Arrows Capital (3AC) have filed to raise their bankruptcy claim against FTX from $120 million to a massive $1.5 billion, accusing FTX of unfairly selling off 3AC’s assets just weeks before 3AC’s collapse. Meanwhile, FTX argues that someone connected to 3AC approved the liquidation. With tensions building on both sides, the case is set for a hearing on November 20.
3AC Demand $1.53B from FTX
According to a recent court filing in Delaware, 3AC claims that FTX wrongfully liquidated its $1.33 billion in assets just weeks before 3AC’s collapse. The liquidators say these early sales lowered the value of 3AC’s assets and hurt its creditors, as they were sold at a low price on the FTX platform.
3AC argues that FTX’s actions were both “avoidable” and “unfair.” They believe the sales were done to pay off debts and should be undone. This claim is a major escalation from 3AC’s initial $120 million filing to $1.5 billion, as 3AC says its assets were worth much more.
Adding to their argument, 3AC also says FTX didn’t provide the necessary information to calculate the losses, with the full details only coming to light this August. However, this delay adds to their accusations that FTX handled the situation poorly.
