3AC Increases Its Claim Against FTX to $1.53 Billion!

Once valued at over $10 billion, 3AC suffered massive losses in mid-2022 due to leveraged trading positions. When Bitcoin (BTC) plummeted to $16,000, the fund was unable to repay its creditors. However, new evidence shows that FTX liquidated $1.53 billion worth of 3AC assets just two weeks before the hedge fund went into liquidation.

Mbottjer, one of the pseudonymous co-founders of FTX Creditors, stated that 3AC had initially claimed $120 million, but after discovering new documents, it increased its claim to $1.53 billion.

Court Sides With 3AC!

3AC argued that it was unaware of these liquidations because of FTX’s own bankruptcy. The court ruled in 3AC’s favor, allowing the hedge fund to proceed with its full $1.53 billion claim in the FTX bankruptcy case.

You Might Be Interested In: Elon Musk Talks About the Name of a New Memecoin!

Meanwhile, Teneo, the firm handling 3AC’s liquidation, revealed that creditors are still owed about $3.3 billion. In December 2023, a British Virgin Islands court froze $1.14 billion worth of assets belonging to 3AC co-founders Kyle Davies and Su Zhu.

According to Nicolai Sondergaard, research analyst at Nansen, even if 3AC had received the additional $1.5 billion in 2022, it still would not have been able to repay all creditor claims. “While 3AC is allowed to pursue a higher claim, it’s uncertain whether they’ll receive the full $1.53 billion,” Sondergaard added.

CZ Raises Questions: Was FTX Involved in LUNA/UST Crash?

Binance founder and former CEO Changpeng Zhao (CZ) called these developments an “interesting turn of events.” In a post on March 14, CZ questioned whether FTX had any involvement in the LUNA/UST crash in May 2022.

The 3AC collapse came just one month after the downfall of Terraform Labs’ LUNA and UST, and shortly before Celsius paused all user withdrawals as its token, CEL, dropped by 90%.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Another Reason for Three Arrows Bankruptcy Has Been Revealed! appeared first on Coin Engineer.

You might like: MicroStrategy Buys More Bitcoin!

The settlement, which resolves the dispute between crypto lender BlockFi and the liquidated crypto hedge fund 3AC, was approved by Michael Kaplan, a judge in the New Jersey Bankruptcy Court. Kaplan approved the deal to prevent further legal battles between the companies, as BlockFi claimed 3AC owed it $129 million, while 3AC argued BlockFi owed them $280 million.

Kaplan declined to disclose the details of the settlement, rejecting the objection to the seal, stating that the terms should remain confidential as the US Trustee failed to justify the need for the debtors to enter into the settlement.

However, BlockFi requested that certain information be redacted, arguing that it was commercially sensitive and could affect its ongoing lawsuit against the bankrupt crypto exchange FTX.

The court granted the sealing request, citing the need to protect settlement strategies and show deference to comity in 3AC’s foreign bankruptcy proceedings.

Approval by Michael Kaplan (BlockFi)

This approval allows BlockFi to proceed with distributions from its creditors to its creditors, which was a key reason for the expedited approval request. Judge Kaplan approved BlockFi’s amended Chapter 11 plan and customer repayment plan, which the company filed for liquidation in September 2023. According to estimates at the time, BlockFi owed up to $10 billion to over 100,000 creditors. Of this debt, $1 billion was owed to its three largest creditors and $220 million to 3AC.

Three Arrows Capital collapsed in June 2022, and BlockFi filed for bankruptcy in late November 2022 following the fall of FTX. In early February, OPNX, a crypto bankruptcy claims platform launched by 3AC co-founders Su Zhu and Kyle Davies, announced that it would officially cease all operations and close by February 14th.

The post BlockFi and Three Arrows Capital (3AC) Reach Settlement! appeared first on Coin Engineer.

You might like: Onchain Analysis Alert! A Drop Could Come!

The company’s liquidator Teneo confirmed the court’s decision, stating that assets had been seized from the founders and Kelly Chen in line with allegations that they were responsible for a depreciation in the value of Three Arrows Capital’s position.

In a statement by Teneo, it was stated that “The IBW Court issued a worldwide freezing order in line with the claims pursued by the liquidators, arguing that the founders should be held responsible for a depreciation equal to the value of 3AC’s position. The freezing of orders is requested”.

Following this development, it is stated that a similar decision was also taken by the court in Singapore. Also, the decision to seize $1 billion in assets belonging to the founders of Three Arrows Capital has caused a great stir in the financial world and the details of the incident are eagerly awaited.

The post Three Arrows Capital Founders’ Assets Frozen by Court! appeared first on Coin Engineer.

The liquidation officer of the crypto hedge fund Teneo confirmed that they obtained a commitment order against Su for failing to comply with a court order that required his cooperation in an investigation related to liquidation. Furthermore, the authorities sentenced Su to 4 months of imprisonment as a result of this decision.

In its statement, Teneo said,

“Joint liquidation officers, on September 25, 2023, due to Mr. Zhu’s deliberate non-compliance with a court decision that essentially forces him to cooperate with the liquidation officers’ investigations and be accountable, they have applied for an execution order against Mr. Zhu and have received this order.” In addition, Teneo said, “We are operating as one of the founders and former investment managers of 3AC”.

The fund’s other founding partner, Kyle Davies, was also given a similar order and sentenced to four months in prison, but he was not arrested because it was unknown where he was.

In the beginning of September, the Singapore Monetary Authority banned Su and Davies from commercial activities held in the country.

You might like: Do Kwon Considers Slack Records Insignificant

Three Arrows Capital’s Collapse

Three Arrows Capital was once one of the largest crypto hedge funds. However, it faced problems in months following the collapse of the Terra ecosystem last year. Along with this, it filed for bankruptcy in July 2022 and, at that time, the company had a debt of more than 3.5 billion dollars to its largest creditors according to related documents.

You can freely share your thoughts and comments about the topic in the comment section. Additionally, please don’t forget to follow us on our Telegram  ,YouTube and Twitter channels for the latest news and updates instantly. So stay tuned!

The post Three Arrows Capital Founder Arrested! appeared first on Coin Engineer.