Lawyers working for the collapse Crypto Exchange FTX have claimed a recovery of $ 1.53 billion from three arrow capital liquidaters, arguing the losses resulting from a risky trading strategy that the creditors should not be paid.
The 3AC liquor initially filed a $ 120 million claim in the FTX’s bankruptcy case in June 2023 and Extended it to $ 1.53 billion in November 2024Claims are accused of contract violations, fidukari duty and unjust promotion.
The liquidator alleged that $ 1.53 billion was held in FTX Hedge fund assets In 2022, the liabilities were liquidated to dispose of the liabilities, contributed to the collapse of 3AC, arguing that the transaction was avoided and the FTX debts delayed the providing information that highlights the liquidation.
Chief Justice John Dorsi agreed and Proposed in March,
FTX says the claims are irrational and baseless
In an objection filed in the US bankruptcy court on Friday for Delaware district, FTX lawyers said the claims were “irrational and baseless”.
He argued that the 3AC “bets Big,” that crypto prices would increase, and when they fell instead, the firm became a victim of its “risky strategy”.
The FTX lawyers said, “Joint liquidator asks the court to make the bill to claim irrational and baseless claims for $ 1.53 billion for a 3AC’s failed strategy.”
There is also a dispute over the account remaining and how to reach the 3AC $ 1.53 billion figure. FTX lawyers argue this Trusted the wrong account balance From June 12, 2022, when the firm’s crypto balance was $ 1.02 billion, not $ 1.59 billion, and the negative United States dollar was $ 733 million, not $ 1.3 billion.
The Lost Asset Theory, which FTX said that 3AC’s arguments are crucux, is based on the crypto balance on June 12, 2022, and asks the lost balance in later days to “heal all”.
“But this is a wrong basis that lacks any legal or factual ability, and, in fact, there is nothing of 3AC,” the lawyers said.
FTX claims that 3AC had only $ 284 million available balance, which was further extended Crypto market price declines And withdrawn by 3AC of $ 60 million.
FTX says the liquidation was only for $ 82 million
In objection, lawyers working for FTX claim that the only liquidation against 3AC was for $ 82 million in Crypto, which was “contracted” under credit and margin agreements, which ensures compliance with the account requirements to the firm.
It has also been claimed in the objection that liquidation did not reduce the overall account remaining as the price was added to the Fiat 3AC account in the USD.
“, Especially, $ 82 million liquidation benefited 3AC by preserving the value of 3AC accounts. Through liquidation, 3AC excluded the deteriorating position in digital assets in favor of stable positions in Fiat currency,” FTX said in objection.
3AC has till 11 July to answer FTX objection. A non-success hearing has been set for 12 August before Chief Justice Karen Owens in the US bankruptcy court for Delaware district.
Connected: The capital of three arrows tries to raise the claim against FTX
FTX and 3AC hunted alleged loans
3AC has also chased Claims against collapse Through a claim of $ 1.3 billion in the case of insolvency of Crypto firm Terraform Labs Terra.
FTX, which was filed for bankruptcy in November 2022, is also undertaking it. Efforts to recover yourself to recover funds With a hurry of cases.
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