Court documents reveal that FTX liquidated $1.53 billion in assets belonging to Three Arrows Capital (3AC) just two weeks prior to the hedge fund's collapse in 2022. This information contradicts previous beliefs that 3AC's downfall was solely due to market conditions. Once valued over $10 billion, 3AC suffered significant losses from leveraged trades and borrowed from over 20 institutions before the crypto market crash in May 2022. The liquidation by FTX, which 3AC claims to have only recently discovered, has resulted in the hedge fund seeking to increase its claim against FTX from $120 million to $1.53 billion. A court ruling has allowed 3AC to pursue this larger claim, although analysts note that even with the additional funds, 3AC may not have been able to cover all creditor claims due to the extent of its financial troubles. The situation highlights complexities surrounding cryptocurrency liquidation and bankruptcy proceedings, emphasizing 3AC's struggles during the crypto downturn.

Source 🔗