Liquidators of the now-bankrupt hedge fund Three Arrows Capital (3AC) have raised their claims against FTX to a staggering $1.53 billion. Originally filed as a $120 million claim, this amendment marks a significant escalation in the liquidators’ efforts to recoup alleged losses.

According to Bloomberg, 3AC’s liquidators argue that, just two weeks before the company collapsed, FTX seized assets worth $1.33 billion from their platform to settle an outstanding debt. This move, they claim, unfairly harmed 3AC’s creditors and disregarded contractual obligations.

In its plea, 3AC requests the court to invalidate these asset seizures, accusing FTX of undervaluing their transactions and failing to provide timely access to critical information. According to the liquidators, this lack of transparency forced them to sift through raw data to assess losses, finally confirming the total amount involved only in August. FTX, for its part, has contested 3AC’s allegations, suggesting an unidentified individual connected to 3AC may have initiated the liquidation. The court will address this motion in a hearing set for November 20.

3AC Pursuing Additional Claims in Terra’s Bankruptcy Case

Beyond its confrontation with FTX, 3AC’s liquidators have set their sights on another defunct crypto entity: Terraform Labs. On August 9, 3AC filed a $1.3 billion claim in Terra’s ongoing bankruptcy case in the U.S. Bankruptcy Court for the District of Delaware. The liquidators argue that Terra’s representations misled 3AC about the stability of key assets within the Terra ecosystem, including TerraUSD (UST) and Luna (LUNA), ultimately contributing to their downfall.

According to the liquidators, Terra’s promotional efforts artificially inflated the value of UST and LUNA, prompting 3AC to make substantial investments in the ecosystem. The hedge fund’s legal representatives contend that they are entitled to damages for direct investments in these tokens, given the devastating financial consequences of Terra’s collapse.

FTX Intensified Recovery Efforts Amid Ongoing Litigation

Meanwhile, FTX, which filed for bankruptcy two years ago, is also pursuing aggressive recovery efforts. On November 8, FTX’s bankruptcy estate initiated a $100 million lawsuit against SkyBridge Capital and its founder, Anthony Scaramucci, alleging funds misused by FTX’s former CEO, Sam Bankman-Fried.

Additionally, on November 10, FTX took legal action against Binance, citing a $1.75 billion repurchase deal with Binance as fraudulent due to FTX’s insolvency at the time.

FTX has filed further lawsuits to reclaim significant sums from key crypto figures and firms, including a recent $90 million claim against Waves founder Aleksandr Ivanov.

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