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Ftx Bankruptcy lawyers forcibly pushed back against claim for $ 1.53 billion submitted by the unsuccessful crypt of Hedge Fund Three Arrows Capital (3ac), call the demand “illogical” and warnings that unjustly deleted means from FTX Legitimate creditors.
In a new court documents Filed on June 20, FTX’s legal team asked judge Delaware bankruptcy to reject the entire claim of 3ac, and claimed that alleged losses of a business company were caused separately Excessive risk And ignored the call on the edge, not for the FTX misconduct.
Requirements for breach of margin
A controversy on margin trades that 3AC placed on the FTX stock in 2022. At that time, 3AC, which he borrowed heavily across the crypto sector, tapped a $ 120 million loan from FTX to finance large positions.
According to FTX, Hedge Fund violated margin requirements in June 2022 after Terrausd Stablecoin has launched a wider melting of the market.
The exchange added that when it announced 3AC that his account had fallen below the requiring threshold values, the company reportedly did not correspond to more than six hours and instead withdrew 18 million dollars worth Ethereum (ETH), which, according to the submission, further deteriorated.
In the face of what it called an urgent credit violation, the FTX disposed of 3AC account and received $ 82 million. FTX attorneys claim that this liquidation was not only contractually allowed, but also prevented even more holes from the balance sheet of assets.
According to lawyers:
“The accounts would be $ 18 million under water under water under water, if there was no disposal. No FTX action would lead to a value, and therefore the claim that 3AC is entitled to FTX is fiction.”
‘Undue assumption’
The submission accused 3AC of the use of “disproportionate and unsupportable initial assumptions” to inflate its original $ 120 million more than 10 times.
To support his position, FTX submitted testimony from Steven P. Contick, CEO of the consulting firm Alvarez & Marsal, who reconstructed the shops concerned and concluded that the forced sales were justified and necessary to stop further losses.
The farm also provided an expert opinion from the Royal Council of the British Virgin Islands Stephen Atherton, who, under the law of BVI, rejected the legal theory 3AC as unhealthy.
FTX Advisor claimed that attempt 3ac to peel off billions back is the offer to involve your own unsuccessful liquidation process and move the blame to the remaining creditors of FTX who are still still Waiting for repayment After the collapse of the stock exchange in November 2022.
The lawyers claimed:
“[3AC seeks] Obtain value from debtors’ assets at the expense of legitimate creditors to save his own unsuccessful liquidation management. However, FTX creditors should not and cannot serve as a backstop for the failed business strategy of 3AC. ”
The collision means the latest reversal in a tangle with more billions of dollars of demands and counterproposals stemming from the dramatic fall of both cryptal companies.
According to the current schedule, 3AC must submit its formal response by July 11, with non -evident hearing set at 12 August in Delaware. Lawyers for 3ac did not immediately respond to requests for comment on Saturdays.
