The FTX bankruptcy estate is filing an objection against a $1.5 billion claim from Three Arrows Capital, asserting that the request is baseless.
Overview of the Dispute between FTX and Three Arrows Capital
FTX is challenging Three Arrows Capital's claim for $1.5 billion, calling it 'illogical and baseless.' The issue revolves around the amount of crypto assets that 3AC held on FTX when both companies collapsed in mid-2022.
Details of the Three Arrows Capital Claim
Three Arrows Capital claims its account balance was nearly $1.6 billion, whereas FTX asserts the net value was only $284 million after subtracting $733 million in margin debt. Most of the losses occurred in June 2022 due to falling crypto prices.
Forecasts for the Case and Next Steps
Should the court side with FTX, 3AC's claim could either be entirely denied or reduced to an unsecured claim, limiting its recovery options. A reply from 3AC is due by July 11, with a court hearing scheduled for August 12.
The dispute between FTX and Three Arrows Capital highlights the complexities of asset regulation and liquidation under market volatility.
