Liquidators of Three Arrows Capital believe FTX's actions will result in a loss of $1.33 billion. A week before the collapse, the situation was unfair and avoidable.
Liquidators of Three Arrows Capital (3AC) are seeking to revise claims against #FTX from £120 million to £1.53 billion %
Liquidators of Three Arrows Capital (3AC) are seeking to revise claims against FTX from £120 million to 11.53 billion /Coinspeaker
The collapse of Three Arrows Capital among other cryptocurrency companies over the past few years has largely shaped the future of #web3 .
3AC's liquidators face the daunting task of recovering funds from the decommissioned FTX and #Terra #Luna .
The defunct cryptocurrency exchange FTX and its investment subsidiary Alameda Research are preparing to distribute up to $1.160 billion to creditors, while liquidators Three Arrows Capital (3AC) are now trying to recover even more money. According to a Bloomberg report, Russell Crumpler, 3AC's liquidator, and Christopher Farmer of Teneo in the British Virgin Islands have increased their request for FTX from $112,000 to $BTC 3AC's liquidators have argued that the exchange unfairly liquidated, sold or transferred assets just two weeks after the collapse caused by the Terra Luna explosion. Specifically, FTX seized $33 million of the $133,000 AC funds to pay off the loan collateral, which the liquidators argued was unfair and impractical.
3AC's liquidator emphasized that the transaction should be invalidated because FTX breached the contract and trust agreement. In its defense, FTX noted that an unidentified person representing 3AC had confirmed the liquidation of the collateral assets.
3AC's liquidator's petition will be heard on the 2nd of 20.11. 2018, when representatives of the two companies will appear in court.
As previously reported by Coinspeaker, Three Arrows Capital owes creditors more than $33.5 billion, which was mostly lost after the collapse of Terra Luna IST in early 2022.
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