30s Summary
The liquidators of failed crypto hedge fund, Three Arrows Capital (3AC), have increased their claim against FXT to $1.53bn alleging they took their assets to cover a $1.33bn debt 3AC owed them. 3AC maintains the deals were invalid as FXT undervalued the transactions and withheld information. FXT disputes this, asserting an individual linked to 3AC initiated the asset sell-off. Similarly, 3AC is pursuing Terraform Labs for $1.3bn, accusing it of misrepresenting the stability of its crypto assets. Separately, FTX is suing SkyBridge Capital, Binance, and Waves’ founder to recover $1.75bn and $90m respectively following fraudulent deals.
Full Article
The people sorting out the mess from the crypto hedge fund Three Arrows Capital (or 3AC for short) that bit the dust are now chasing FXT for even more cash. They’ve bumped up their claim from a cool $120 million to a whopping $1.53 billion. They are saying that FXT took their assets, just two weeks before 3AC hit the wall, to cover a massive $1.33 billion debt that 3AC owed them. And they’re arguing that was a wrong move – not fair and hurtful to the people who 3AC owed money to.
3AC is arguing that the deals should be declared as invalid, accusing FXT of seriously undervaluing the transactions and breaking their trust and contract. 3AC is also saying that FXT was slow to hand over necessary information, leaving 3AC to figure out the losses for themselves. They say they only managed to confirm the liquidated amount in August because of this.
On the other hand, FXT hit back saying that someone with a link to 3AC was the one who started the asset sell-off. They’re not saying who it was just yet. A court hearing’s been set for November 20th to hash out the whole matter over the increased claim.
But 3AC hasn’t just got FXT in their sights. They’re also gunning for another collapsed crypto firm, Terraform Labs. They slammed them with a $1.3 billion claim at a bankruptcy court in Delaware back on August 9th. 3AC claims Terra was not straight with them about the stability of their crypto assets, including their tanked stablecoin TerraUSD (UST) and Luna (LUNA). They said Terra promoted these tokens in a way that pumped up their value artificially, leading 3AC to sink significant cash into them. Now they want damages for these direct purchases.
Meanwhile, FTX, which filed for bankruptcy themselves two years ago, is also looking to get back some lost assets. They slapped a $100 million lawsuit against SkyBridge Capital and its founder, Anthony Scaramucci, to recover funds that their former CEO spent on investment deals. They’re also suing Binance, the crypto exchange and its former CEO, Changpeng Zhao, over a $1.75 billion deal that they claim was fraudulent. Plus, FTX’s trading arm (Alameda Research) has taken legal action against Waves’ founder Aleksandr Ivanov to get back about $90 million in crypto from Waves.