PANews reported on November 14 that according to Cointelegraph, the liquidator of the defunct crypto hedge fund Three Arrows Capital is trying to modify its claim against FTX, increasing its claim amount from US$120 million to US$1.53 billion.
Three Arrows’ liquidators claim that two weeks before the hedge fund collapsed, FTX liquidated and seized their assets on the platform to settle a $1.33 billion debt. The hedge fund claims that these transactions were “avoidable and unfair” and caused damage to Three Arrows’ creditors. Three Arrows believes that the liquidation should be invalidated, accusing FTX of undervaluing transactions and breaching trust and contracts.
Three Arrows also claimed that FTX delayed providing necessary information, forcing Three Arrows to parse raw data to calculate losses. As a result, Three Arrows said it could only confirm the liquidation amount in August. However, FTX responded that an unnamed individual associated with Three Arrows initiated the liquidation of assets, and FTX has not yet identified this person. The court will hold a hearing on November 20 to discuss Three Arrows' motion to amend its claims.
