Bankruptcy Crypto Exchange FTX has said it should not have to pay a massive recovery requirement of $ 1.53 billion of three arrow capital, arguing in a recent court that files that Crypto Hedge Fund’s “own risky risky [trading] Strategy caused its collapse and its own account activity – no action by [FTX] – resulted in a marked decrease in the “value” that is linked to 3AC accounts in June 2022. “
“3AC bet big, that cryptocurrency prices would rise with the help of cash it did not have, and when prices instead fell, 3AC continued to liquidate the risky bets it had placed and withdraw assets from [FTX]“FTX’s lawyers wrote in the archiving.
The Delaware Court, which oversees the FTX’s bankruptcy, gave 3ACS liquidators permission to expand their claims earlier this year, which came to an original charge of $ 120 million. This Came After 3ac’s Lawyers Allegedly Discovered New Evidence Suggesting That Ftx Had Liquidated $ 1.53 Billion of 3ac’s Assets Two Weeks Before the Hedge Fund Started Its Own Liquidation Proceedings In June 2022. Carried Out to Satisfy A Loan to FTX – But 3ac’s Lawyers Pused Back, Arguing That The Loan to FTX Wasn’t sufficiently Documented or otherwise supported. The bankruptcy court sits with 3AC and found insufficient evidence to support FTX’s claim for a loan.
In the latest filing, lawyers for FTX’s property said on June 12, 2022, the actual value of assets on 3AC’s accounts was only $ 284 million – $ 1.017 billion in digital assets and negative $ 733 million in US dollars. They also added that the “first and only” liquidation of 3AC’s assets ordered by FTX was on June 14, 2022, and swapped $ 82 million in crypto for cash – a step they argued “actually benefiting 3AC (not FTX).”
“The common liquidators blow roughly the actual value of $ 284 million of assets linked to 3AC accounts on June 12, 2022 by more than $ 1.2 billion, and they ignore that the entire loss in the quota was due to market price declines and 3AC’s own withdrawals, no action taken by the FTX,”
“The common liquidators ask this court to force other exchange customers and creditors to feed the bill for 3AC’s failed strategy by claiming illogical and baseless claims of $ 1.53 billion …
[T]His is a false prerequisite that lacks any legal or factual profits, and is actually due to 3AC, ”the lawyers added.
FTX, which at one point was one of the largest crypto exchanges in the world, filed for bankruptcy protection shortly after its collapse in November 2022. Exchange’s Recovery Trust began distributing $ 5 billion to FTX creditors in May.
3AC collapsed in June 2022, a month after the collapse of the Terra/Luna ecosystem and started a domino-like collapse of major cryptic companies, including Voyager, Celsius, Blockfi and Genesis.
3AC has until July 11 to submit an objection before the August 12 consultation.
