Arrow Capital seeks to increase claim amount against FTX to $1.53 billion
On November 14, Cointelegraph reported that the liquidator of the defunct crypto hedge fund Three Arrows Capital is trying to amend its claim against FTX, increasing its claim amount from $120 million to $1.53 billion.
Three Arrow's liquidators claim that two weeks before the hedge fund collapsed, FTX liquidated and seized their assets on the platform to settle $1.33 billion in debt. The hedge fund claims the trades were "avoidable and unfair" and caused damage to Three Arrow's creditors. Three Arrow argues the liquidation should be void, accusing FTX of undervaluing the trades and breaching trust and contracts.
Three Arrows Capital also claimed that FTX delayed providing the necessary information to force Three Arrows Capital to parse the original data source to calculate the loss. As a result, Three Arrows Capital said it could only confirm the liquidation amount in August. However, FTX responded that an unnamed individual associated with Three Arrows Capital initiated the liquidation of the assets, and FTX has not yet identified this person. The court will hold a hearing on November 20 to discuss Three Arrows Capital's motion to amend the claim.