The liquidators of Three Arrows Capital filed a lawsuit by the state of Delaware against the FTX exchange in 2023. According to the case file, these funds belonged to the fund and were posted in the exchange accounts. FTX closed them without notifying the fund, thereby assigning funds allegedly in payment of debt, representatives of Three Arrows Capital believe.
The fund accuses the exchange of violation of duties and illegal enrichment. In turn, FTX lawyers say that the lawyer’s lawsuit is based on “unreasonable premises, incorrect numbers and blindness to real facts”.
FTX recognized that $ 82 million was forcibly eliminated. However, according to the exchange, this was not the collapse of the fund – it was due to the exceptionally risky trading strategy of the organization itself. The liquidation of $ 82 million was allegedly provided for by the terms of the credit line provided by the FTX fund.
According to the exchange lawyers, this hedge fund violated the terms of the contract when the balance of his account on the platform collapsed below $ 240 million after the collapse of the stabelcoin UST.
The platform statement states that the hedge fund representatives ignored the FTX request, instead, having removed $ 18 million on the air. Only after that the exchange was forced to eliminate the position, which allowed to avoid a negative balance.
“Three Arrows Capital seeks to benefit from the property of debtors at the expense of legitimate creditors in order to save their own failed liquidation procedures. But FTX creditors should not and cannot serve as a support of the unsuccessful trading strategy of the hedge fund, ”FTX emphasized.
The fund has time until July 11 to give an answer. The hearing in the case is scheduled for August 12.
Earlier, the largest cryptocurrency exchange of the world Binance appealed to the Court of Delaware with a request to reject the claim with the requirements of $ 1.76 billion, filed by the temporary administration of the bankrupt exchange of FTX.
Source: Bits
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