The legal battle between Three Arrows Capital and FTX has led to a significant claim increase against the crypto exchange.
FTX Woes
The legal battle started after FTX debtors refused to cooperate. The court ruled that delays were caused by FTX debtors themselves who failed to provide essential documents in due time. The judge noted that 3AC made every possible effort to obtain the necessary data but encountered obstacles.
Claim Increase
In November 2024, liquidators of Three Arrows Capital approached the court to increase the claim against FTX from $120 million to $1.53 billion. They claim that FTX liquidated their assets before the hedge fund collapsed to cover a $1.33 billion debt. Three Arrows Capital believes these transactions were unfair and could have been avoided.
Freezing FTX Assets
The court proceedings continued after liquidators were allowed to freeze over $1.4 billion in FTX assets. It was claimed that FTX undervalued transactions, breaching trust and contract. The hedge fund states that due to delays, they had to parse raw data themselves to calculate losses.
Despite FTX's bankruptcy and numerous claims, the company continues its recovery efforts. Only time will tell how the judgment in favor of Three Arrows Capital will impact FTX's future proceedings.
