United

Waves

Terra

Liquidators of the defunct crypto hedge fund Three Arrows Capital (3AC) are reportedly seeking to amend their claim against FTX, increasing it to $1.53 billion from $120 million..
<a data-ct-non-breakable="null" href="https://news.bloomberglaw.com/business-and-practice/three-arrows-ups-bankruptcy-claim-against-ftx-to-1-5-billion" rel="nofollow noopener" target="_blank" text="null" title="https://news.bloomberglaw.com/business-and-practice/three-arrows-ups-bankruptcy-claim-against-ftx-to-1-5-billion">According</a> to Bloomberg, 3AC’s liquidators allege that two weeks before the hedge fund collapsed, FTX liquidated and seized their assets on the platform to settle a $1.33 billion debt. The hedge fund claims the transactions were “avoidable and unfair” and caused harm to 3AC creditors.
The liquidations should be invalidated, 3AC claims, accusing FTX of undervaluing the transactions and breaching both trust and contract.
The bankrupt hedge fund also claims FTX delayed providing necessary information, forcing 3AC to parse raw data to calculate losses. As a result, 3AC said it could only confirm the liquidated amount in August.
FTX responded by saying that an unidentified individual connected to 3AC initiated the asset liquidation. FTX has not yet determined the identity of the person. The court will hold a hearing on Nov. 20 to discuss 3AC’s motion to amend the claim.&nbsp;
<h2 id="3ac-liquidators-want-1-3-billion-from-terraform-labs">3AC liquidators want $1.3 billion from Terraform Labs</h2>
Beyond FTX, 3AC is also <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/3-ac-liquidators-file-1-3-b-claim-against-terraform-labs" rel="" target="_self" text="null" title="https://cointelegraph.com/news/3-ac-liquidators-file-1-3-b-claim-against-terraform-labs">pursuing claims against another collapsed</a> crypto firm, Terraform Labs. On Aug. 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 3AC liquidators alleged that Terra misled 3AC about the stability of crypto assets in the Terra ecosystem. This includes the collapsed algorithmic stablecoin TerraUSD (UST) and Luna (LUNA).
According to the 3AC liquidators, Terra promoted these tokens in ways that artificially inflated their value, which led 3AC to make significant investments. The liquidators are now seeking damages for the direct purchases of UST and LUNA.
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/3ac-linked-wallet-nft-3-year-old-offer-not-canceled" rel="null" target="null" text="null" title="null">3AC-linked wallet bought NFT for $59K due to 3-year-old offer that wasn’t canceled</a>
<h2 id="ftx-file-lawsuits-to-recover-crypto">FTX file lawsuits to recover crypto</h2>
FTX, which filed for bankruptcy two years ago, intensified its own recovery efforts in November to reclaim assets.
On Nov. 8, FTX’s bankruptcy estate <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/ftx-estate-sues-scaramucci-s-sky-bridge-capital" rel="null" target="null" text="null" title="null">filed a $100 million lawsuit</a> against SkyBridge Capital and its founder, Anthony Scaramucci. FTX aims to recover funds its former CEO Sam Bankman-Fried spent on investment deals with Scaramucci and SkyBridge in 2022.&nbsp;
On Nov. 10, FTX <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/tx-estate-sues-binance-cz-1-8-billion" rel="null" target="null" text="null" title="null">filed a lawsuit against</a> crypto exchange Binance and its former CEO, Changpeng Zhao. The FTX bankruptcy estate claimed that Bankman-Fried’s $1.75 billion repurchase deal with Binance was fraudulent because FTX was insolvent.&nbsp;
On Nov. 11, FTX’s trading arm, Alameda Research, <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/alameda-research-90-m-waves-founder" rel="null" target="null" text="null" title="null">filed a lawsuit</a> against Waves founder Aleksandr Ivanov as part of its attempts to recover crypto assets. According to a court filing, the company aims to recover about $90 million in crypto from Waves.&nbsp;
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/victims-ftx-hong-kong-civil-suit-gemini-singapore-express/" rel="null" target="null" text="null" title="null">‘Hong Kong’s FTX’ victims win lawsuit, bankers bash stablecoins: Asia Express</a>

Three Arrows Capital seeks to increase claim against FTX to $1.5B

Table of Contents

Cointelegraph

Other articles published on Nov 14, 2024

Crypto.com Expands Offerings with Acquisition of Fintek Securities

Bitcoin miner outflows surge as price hits new highs

Dogwifhat (WIF) Price Surge 120%, While POPCAT Price Hits Key Targets – What’s Next?

When Will the Historic Moment Come in Bitcoin? When Will the BTC Price Reach $100,000? Top Analys...

BlackRock’s Tokenized Fund BUIDL Now Available on Aptos, Arbitrum, and More Blockchains

$HODL Token Relaunch and Airdrop: Setting a New Standard for DeFi Recovery

Join our free newsletter for daily crypto updates!