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The war between Three Arrows Capital (3AC) and FTX has grown more intense, with 3AC liquidators raising their claim against the bankrupt exchange to a whopping $1.53 billion. Initially, 3AC had claimed $120 million, but after a deeper probe, they now claim that FTX misused hedge fund funds to settle other creditors.
FTX’s Alleged Misuse of Funds
As per 3AC’s liquidators, FTX had $1.53 billion worth of assets belonging to the hedge fund. These assets, they contend, ought to have been included in FTX’s bankruptcy process. Instead, 3AC alleges that FTX used these funds to pay off other parties, leaving 3AC at a considerable loss.
Delaware Court Sides with 3AC
The Delaware Bankruptcy Court has also favored 3AC, declaring that FTX didn’t render essential financial data in timely fashion. This move fortifies 3AC’s stance as it attempts to recoup lost funds in the fall of both companies.
The Bigger Picture
This court battle highlights the continuing repercussions of FTX’s collapse and points to the dangers of crypto asset mismanagement. The case, as bankruptcy proceedings go on, may establish a precedent for other creditor claims in the industry.
Stay tuned for additional developments as the case continues to roll out.
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