Three Arrows Capital seeks to increase claim against FTX to $1.53 billion

Liquidators of defunct crypto hedge fund Three Arrows are attempting to amend their claim against FTX, increasing it from $120 million to $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 argues that the liquidation should be voided, accusing FTX of underestimating transactions and breaching trust and contracts. Three Arrows also claims 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. (Cointelegraph)