FTX Rejects Three Arrows Capital’s $1.53 Billion Recovery Claim
Bankrupt exchange FTX contests a $1.53 billion recovery claim from Three Arrows Capital (3AC), asserting that 3AC’s own risky trading strategies led to its collapse, not FTX's actions. Key points include:
- FTX's lawyers argue that 3AC’s losses resulted from market declines and its own withdrawals.
- The Delaware court previously allowed 3AC to increase its claim significantly from $120 million after new evidence surfaced regarding asset liquidation by FTX.
- FTX claims the actual value of 3AC’s accounts was only $284 million as of June 12, 2022, with substantial losses attributed to 3AC's activities.
- FTX asserts that their liquidation on June 14, 2022, benefited 3AC, contradicting 3AC's claims of loss.
- FTX emphasizes that 3AC's claim lacks legal merit and insists it owes nothing to 3AC.
FTX filed for bankruptcy in November 2022 and began distributing $5 billion to creditors in May. The 3AC objection deadline is July 11, with a court hearing set for August 12.