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.

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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%.

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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.