• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M

FTX Liquidated $1.53 Billion of 3AC Assets Before Its Collapse

user avatar

by Giorgi Kostiuk

6 hours ago


Newly unsealed court documents reveal that FTX secretly liquidated $1.53 billion worth of Three Arrows Capital (3AC) assets two weeks before the hedge fund's collapse in 2022. This disclosure challenges previous claims that 3AC's downfall was purely market-driven.

FTX’s Asset Liquidation

According to recent findings, FTX liquidated $1.53 billion of 3AC's assets shortly before the hedge fund's downfall, which previously managed over $10 billion. This move questions the previous conclusions about the causes of 3AC’s collapse. While 3AC borrowed from more than 20 major institutions, FTX liquidated a substantial part of its holdings prior to the fund's demise.

We were unaware of the liquidations due to FTX’s own bankruptcy proceedings.Mbottjer, co-founder of FTX Creditor

3AC's Collapse Circumstances

In May 2022, following the crypto market crash when Bitcoin dropped to $16,000, 3AC found itself in a difficult spot. After a series of failed leveraged trades, 3AC believed that its collapse was solely market-driven. However, FTX's significant reduction of 3AC's positions shortly before its bankruptcy increased its claim against FTX from $120 million to $1.53 billion.

Industry Implications

The revelation of FTX’s liquidation has created a stir in the industry, sparking speculation among analysts. Some believe that it may not have saved 3AC even with access to an extra $1.5 billion. Binance founder Changpeng Zhao called it an 'interesting turn of events'.

The secret liquidation of 3AC's assets by FTX adds a new chapter to the hedge fund's collapse story. While the disclosed details do not provide a definitive answer on whether the fund could have been saved, they challenge the perceptions of the nature of its collapse and draw interest to the actions of FTX at the time.

0

Share

Other news

Minnesota Cryptocurrency Bill: Details and Implications

Minnesota considers a cryptocurrency bill proposing new investment and tax opportunities.

user avatarGiorgi Kostiuk

11 minutes ago

Bitcoin Demand Weakening Since December 2024

CryptoQuant's report signals diminished interest in Bitcoin trading since December, affecting global crypto markets.

user avatarGiorgi Kostiuk

11 minutes ago

How Litecoin, Chainlink, and Polkadot Are Transforming the Blockchain World

Discover how Litecoin, Chainlink, and Polkadot are revolutionizing digital transactions with innovative technologies.

user avatarGiorgi Kostiuk

11 minutes ago

Sonic and FloppyPepe (FPPE) Prices: A Look at Current Trends

Sonic and FloppyPepe (FPPE) draw attention as they gear up for a potential crypto bull run. Explore what's happening.

user avatarGiorgi Kostiuk

28 minutes ago

Fibonacci and Market Cycles Define Ethereum's Path

Analysis of Ethereum's support and resistance levels. Support at $1,850 is critical for price growth.

user avatarGiorgi Kostiuk

36 minutes ago

Chainlink Increases Circulation by 19 Million LINK

Chainlink added 19 million LINK to circulation, causing a 5% price drop.

user avatarGiorgi Kostiuk

37 minutes ago

dapp expert logo
© 2020-2025. DappExpert. All rights reserved.
© 2020-2025. DappExpert. All rights reserved.

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.