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Court Grants 3AC Liquidators $1.53 Billion Claim Against FTX Amid Bankruptcy Battle
A U.S. bankruptcy court has ruled in favor of Three Arrows Capital (3AC) liquidators, allowing them to expand their claim against FTX from an initial $120 million to a staggering $1.53 billion. The development comes as part of the ongoing bankruptcy battle between 3AC and FTX.
As reported by cryptonewsland, this decision was made after the liquidators successfully proved that delays in their claims were caused by record issues at FTX. This court approval paves the way for a massive legal showdown between the parties involved.
The new claim is significantly higher than the original $120 million, as it includes allegations of breach of contract, unjust enrichment, and breach of fiduciary duty against FTX. The liquidators have accused FTX of seizing $1.33 billion in assets just two days before 3AC’s default, thereby reducing recovery options for creditors.
The dispute between the parties began when 3AC collapsed in 2022 due to significant losses resulting from failed transactions involving TerraUSD stablecoin and excessively leveraged investments. Following the firm’s collapse, its creditors pursued asset recovery efforts, targeting multiple trading platforms, including FTX, which also went bankrupt in the same year.
The $1.53 billion claim is expected to have far-reaching implications for all parties involved. The move is likely to escalate tensions between 3AC liquidators and FTX as they navigate this complex bankruptcy battle.
In related news, FTX has been embroiled in multiple legal battles. The company recently filed lawsuits against Binance and CEO Changpeng Zhao in an attempt to recover $1.76 billion in crypto assets. Additionally, it has taken legal action against SkyBridge Capital, demanding compensation of $100 million for alleged misused investments by former CEO Sam Bankman-Fried.
The 3AC liquidators have also launched a separate lawsuit against Terraform Labs, seeking $1.3 billion in damages. They argue that the firm’s contributions to the downfall of 3AC by misleading investors about the stability of its tokens contributed to this debacle.
Austin Mwendia is a seasoned crypto writer with expertise in blockchain technology and finance. With years of experience, he offers insightful analysis, news coverage, and educational content to a diverse audience.
