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# United States Tribunal Approves Augmented Assertion of 3AC Against FTX, Dismissing Rejections of FTX
An American insolvency tribunal has permitted the now-bankrupt digital currency hedge fund Three Arrows Capital (3AC) to greatly expand its assertion against the failed digital currency exchange FTX. The assertion has risen from an initial $120 million to a staggering $1.53 billion.
In a pronouncement on March 13, a magistrate in the Delaware District US Bankruptcy Tribunal determined that FTX owes 3AC $1.53 billion. This constitutes a considerable increase from the initial $120 million assertion submitted in June 2023. FTX contested the pronouncement, contending that it was overdue and would impede their insolvency procedures. Nevertheless, the magistrate concurred with 3AC’s liquidators, affirming that they had furnished adequate notification of their assertion. The magistrate remarked that the postponement in presenting the larger assertion was primarily attributable to FTX’s omission to promptly disseminate pertinent records with 3AC’s liquidators. This data was vital for them to precisely evaluate and elaborate on their assertion.
3AC’s liquidators maintain that FTX possessed $1.53 billion in 3AC’s resources, which it then converted to cash to settle 3AC’s liabilities. They additionally assert that these dealings are preventable and that FTX has not supplied data that would elucidate the liquidations.
Both 3AC and FTX were formerly significant entities in the digital currency realm, but have subsequently disintegrated. Three Arrows Capital, formerly among the biggest digital currency hedge funds, collapsed in June 2022 after its exceedingly leveraged positions in Bitcoin (BTC), Ethereum (ETH), and other altcoins were mandatorily liquidated. They petitioned for insolvency in July 2022. Its liquidators are presently endeavoring to recoup assets by vending its outstanding resources and prosecuting assorted legal actions, most prominently against FTX and Terraform Labs, to reimburse its lenders.
The FTX digital currency exchange proclaimed insolvency in November 2022 and has likewise been striving to recoup assets through assorted legal actions, encompassing one against Binance and Changpeng Zhao.
Recently, FTX began its procedure for reimbursing debts, with significant entities such as BitGo and Kraken offering support to facilitate the entire operation.
