Three Arrows Capital seeks to increase claim against FTX to $1.53 billion

On November 14th, according to Cointelegraph, the liquidators of the collapsed cryptocurrency hedge fund, Three Arrows Capital, are attempting to modify their claim against FTX, increasing it from $120 million to $1.53 billion.

The liquidators of Three Arrows Capital claim that two weeks before the hedge fund collapsed, FTX liquidated and seized their assets on the platform to settle a $1.33 billion debt. The hedge fund claims that these transactions were "avoidable and unfair" and caused damage to Three Arrows Capital's creditors. Three Arrows Capital believes the liquidation should be invalidated and accuses FTX of underestimating the transactions and violating trust and contracts.

Three Arrows Capital also claims that FTX delayed providing necessary information, forcing Three Arrows Capital to parse raw data to calculate losses. Therefore, Three Arrows Capital states that they can only confirm the liquidation amount in August. However, FTX responded that an unnamed individual associated with Three Arrows Capital initiated the asset liquidation and FTX has not yet confirmed the person's identity. A hearing is scheduled for November 20th to discuss Three Arrows Capital's motion to modify their claim.