FTX filed a formal objection to a $1.53 billion claim from the liquidators of the failed hedge fund Three Arrows Capital (3AC), arguing that substantial losses were due to 3AC's reckless trading strategy.
Challenge to Three Arrows Capital's Claim
FTX's formal response filed in the U.S. Bankruptcy Court for Delaware describes 3AC's claim as 'illogical and baseless.' The company claims that 3AC is attempting to shift the blame for its failed trades onto FTX creditors.
Disputed Loss Figures
Central to the dispute is how 3AC calculated its losses. FTX argues that 3AC's reported figures were exaggerated and did not reflect the reality of its account. While 3AC claimed $1.59 billion in crypto, FTX insists the true figure was only $1.02 billion.
FTX's Efforts to Recover Funds
FTX is simultaneously attempting to recover funds from its collapsed empire, filing lawsuits against former executives and associates. These efforts are aimed at recouping losses and beginning repayments to creditors.
The battle between FTX and Three Arrows Capital may set a significant precedent for the crypto industry regarding accountability for trading decisions.
