FTX liquidated $1.53 billion in assets belonging to Three Arrows Capital (3AC) just two weeks before the hedge fund's fall in 2022, suggesting that its demise was not solely driven by market factors. 3AC, once valued at over $10 billion, had borrowed extensively from over 20 large institutions, and their risky trades collapsed around the crypto crash in May 2022. Recent court documents reveal that 3AC claims it was unaware of the significant liquidation due to FTX's bankruptcy proceedings. They are now seeking to increase their claim against FTX from $120 million to $1.53 billion. Despite this, analysts from Nansen indicate that even with the extra funds from FTX, 3AC would likely not have met its debt obligations. The situation has drawn attention from high-profile industry figures, including Binance co-founder Changpeng Zhao, as it raises questions about potential connections to earlier market crashes involving related firms.

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