Newly revealed court documents show that FTX secretly liquidated $1.53 billion in three Arrow Capital (3AC) assets two weeks before the 2022 hedge fund collapse. The disclosure questions the previous narrative, suggesting that the failure of 3AC is entirely market-driven.
Once the value exceeds $10 billion, 3AC Collapsed in mid-2022 After a series of directions trading, it turned into a sour taste. Hedge funds have borrowed from more than 20 large institutions before the cryptocurrency crash in May 2022, which saw Bitcoin (BTC) fell to $16,000.
However, recent evidence has been found that FTX Exchange liquidated $1.53 billion of 3AC assets just two weeks before the hedge fund collapse.
3AC “requests the bankruptcy court to increase its claims against FTX from $120 million to $1.53 billion,” according to “Mbottjer”, the co-founder of the fake bonds of ftx creditors, the group’s FTX creditor and bankruptcy claim buyer.
“3AC said it did not find evidence until recently that FTX liquidated 153b’s 3AC assets two weeks before 3AC itself began liquidation, which far exceeded the initial claims of $120 million,” they said.
source: Mbottjer
Crypto hedge funds claim that due to FTX’s own bankruptcy proceedings, it has never been notified of these liquidations. The court ruled that 3AC took honest action to allow it to file its full $1.53 billion claim in FTX’s bankruptcy case.
December 21, 2023, British Virgin Islands Court Freeze $1.14 billion in value 3AC co-founders Kyle Davies and Su Zhu’s assets. Teneo estimates that 3AC creditors still owe $3.3 billion after that Hedge funds closed in 2022.
Davies claims allegations from him and co-founder Teneo, the company responsible for 3AC liquidation Su Zhu “No cooperation” has been exaggerated.
Related: U.S. court nods to three arrows, raising its FTX claim to $1.53B
Lack of $1.5 billion is not enough to avoid a 3AC crash
While the $1.53 billion sum is significantly larger than FTX’s previously disclosed liquidation, it may not be enough to save 3AC from bankruptcy, Nansen research analyst Nicolai Sondergaard said.
“From my opinion, even if they received an additional $1.5 billion in 2022, they still can’t meet the creditor’s claims/debt repayments.”
“In my opinion, without becoming a legal expert, it seems that 3AC, while allowed to pursue a larger amount, may not receive the entire $1.53 billion claim. The analysts added that it seems realistic that they will get more, but it is somewhat uncertain. ”
Related: 3ac liquidator filed $1.3B claim against Terraform Labs
Changpeng Zhao, co-founder and former CEO of Binance, called the revelation “an interesting event.”
source: CZ BNB
Zhao said in a March 14 X post: “I’m curious if FTX has anything to do with Luna/UST Crash/Depeg.”
The 3AC crash occurred a month after Terraform Labs’ Terra (lunc) and terraces (USTC) token, soon Pause all user withdrawals In its local tokens Celsius (this) 90% drop.
https://www.youtube.com/watch?v=tvmmj6rr4so
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