Liquidators of 3AC Raise Claims Against Bankrupt FTX to $1.53 Billion

The bankruptcy managers of the cryptocurrency hedge fund Three Arrows Capital (3AC) have been granted permission to raise their claim against the bankrupt cryptocurrency exchange FTX from $120 million to $1.53 billion. This information is outlined in legal documents.

Judge John Dorsey dismissed the objections raised by the debtors of the trading platform, who argued that 3AC’s amendment to its Proof of Claim (POC) was submitted late and created obstacles in the bankruptcy proceedings.

He emphasized that the delay stemmed from the actions of the FTX team, which failed to provide the necessary information to the hedge fund’s liquidators in a timely manner. Dorsey noted that the bankruptcy officials of 3AC had made good faith efforts to acquire the required data.

Initially, in June 2023, 3AC had filed a claim for $120 million in the FTX bankruptcy case. In November 2024, the amount was increased to $1.53 billion. Representatives justified this increase by stating that the assets of 3AC held in the exchange accounts were liquidated in 2022 to cover debts totaling $1.33 billion.

3AC contends that the liquidation transactions were questionable, harmed the fund’s creditors, and would have been contested had FTX provided the requested documents earlier.

In response, the exchange argued that the initial claim did not accurately reflect the true extent of 3AC’s claims.

Furthermore, it’s worth noting that in August 2024, the bankruptcy managers of the hedge fund also sought at least $1.3 billion from Terraform Labs, which was behind the Terra ecosystem.