{"id":125078,"date":"2025-03-14T13:18:23","date_gmt":"2025-03-14T13:18:23","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=125078"},"modified":"2025-03-14T13:18:23","modified_gmt":"2025-03-14T13:18:23","slug":"ftx-liquidated-1-5b-in-3ac-assets-2-weeks-before-hedge-funds-collapse","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=125078","title":{"rendered":"FTX liquidated $1.5B in 3AC assets 2 weeks before hedge fund\u2019s collapse"},"content":{"rendered":"

Source: Cointelegraph.com NewsNewly revealed court documents show that FTX secretly liquidated $1.53 billion in Three Arrows Capital (3AC) assets just two weeks before the hedge fund collapsed in 2022. The disclosure challenged previous narratives that 3AC\u2019s downfall was solely market-driven.
\nOnce valued at over $10 billion, 3AC collapsed in mid-2022 after a series of leveraged directional trades turned sour. The hedge fund had borrowed from over 20 large institutions before the May 2022 crypto crash, which saw Bitcoin (BTC) fall to $16,000.
\nHowever, recently-discovered evidence shows that the FTX exchange liquidated $1.53 billion worth of 3AC\u2019s assets just two weeks ahead of the hedge fund\u2019s collapse.
\n3AC \u201casked a bankruptcy court to let it increase its claim against FTX from $120 million to $1.53 billion,\u201d according to \u201cMbottjer,\u201d the pseudonymous co-founder of FTX Creditor, a group FTX creditors and bankruptcy claim buyers.
\n\u201c3AC says it only recently discovered evidence that FTX liquidated $1.53B of 3AC\u2019s assets just two weeks before 3AC itself went into liquidation, much more than the $120M originally claimed,\u201d they stated.
\nSource: MbottjerThe crypto hedge fund claims it was never notified of these liquidations due to FTX\u2019s own bankruptcy proceedings. A court ruled that 3AC acted in good faith, allowing it to pursue its full $1.53 billion claim in FTX\u2019s bankruptcy case.
\nOn Dec. 21, 2023, a British Virgin Islands court froze $1.14 billion worth of 3AC co-founder Kyle Davies and Su Zhu\u2019s assets. Teneo has since estimated that 3AC creditors are still owed roughly $3.3 billion following the hedge fund\u2019s collapse in 2022.
\nDavies claimed that allegations from Teneo \u2014 the firm in charge of 3AC\u2019s liquidation \u2014 that he and co-founder Su Zhu were \u201cnot cooperating\u201d were exaggerated.
\nRelated: US court gives Three Arrows nod to increase its FTX claim to $1.53B
\nMissing $1.5 billion not enough to avoid 3AC collapse
\nWhile the $1.53 billion sum is significantly larger than FTX\u2019s previously disclosed liquidations, it may not have been enough to save 3AC from bankruptcy, according to Nicolai Sondergaard, research analyst at Nansen:
\n\u201cFrom what I can see, even if they in 2022 had the additional $1.5 billion they still would not have been able to meet creditor claims\/debt repayments.\u201d
\n\u201cWithout being a legal expert, it seems to me that 3AC, while being allowed to pursue a much larger amount, likely won\u2019t get the full $1.53 billion claim. It seems realistic that they will get more, but how much is uncertain,\u201d the analyst added.
\nRelated: 3AC liquidators file $1.3B claim against Terraform Labs
\nBinance co-founder and former CEO Changpeng Zhao called the revelations an \u201cinteresting turn of events.\u201d
\nSource: CZ BNB\u201cI am curious if FTX had anything to do with the LUNA\/UST crash\/depeg in May 2022,\u201d Zhao said in a March 14 X post.
\nThe collapse of 3AC occurred a month after that of Terraform Labs\u2019 Terra (LUNC) and TerraClassicUSD (USTC) tokens and shortly before crypto lender Celsius paused all user withdrawals after its native token Celsius (CEL) dropped 90%.
\nMagazine: \u2018Hong Kong\u2019s FTX\u2019 victims win lawsuit, bankers bash stablecoins: Asia ExpressRead More<\/a><\/p>","protected":false},"excerpt":{"rendered":"

Source: Cointelegraph.com NewsNewly revealed court documents show that FTX secretly liquidated $1.53 billion in Three Arrows Capital (3AC) assets just two weeks before the hedge fund collapsed in 2022. The… <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/125078"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=125078"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/125078\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=125078"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=125078"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=125078"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}