Catenaa, Friday, March 14, 2025- A US bankruptcy court has ruled on Thursday (13) in favor of Three Arrows Capital (3AC), allowing the failed crypto hedge fund to expand its claims against bankrupt exchange FTX from $120 million to $1.53 billion, despite FTX’s objections.
The US Bankruptcy Court for the District of Delaware determined Thursday that 3AC’s liquidators had acted diligently in filing their claims but faced delays due to FTX’s slow record-sharing process.
The decision comes as FTX continues its court-supervised restructuring, with initial creditor repayments having begun last month.
FTX had argued that the new claim would impose “significant prejudice” on its bankruptcy estate, potentially disrupting its reorganization plan, which was negotiated without consideration of 3AC’s expanded demands.
However, the court ruled that FTX had not provided sufficient evidence to support its case.
3AC initially filed a $120 million claim in June 2023 but later sought to increase it to cover alleged breach of contract, fiduciary duty violations, and unjust enrichment.
The hedge fund collapsed in 2022 following the implosion of the Terra-Luna ecosystem, exposing inadequate risk management.
The ruling adds new complexity to FTX’s bankruptcy proceedings, as the estate works to settle outstanding claims and finalize creditor distributions.
