Last updated on March 15th, 2025 at 10:34 am
A U.S. bankruptcy court has ruled in favour of Three Arrows Capital (3AC) liquidators, granting them permission to increase their claim against the collapsed crypto exchange FTX from $120 million to $1.53 billion.
In a March 13 ruling, Chief Judge John Dorsey of the U.S. Bankruptcy Court for the District of Delaware dismissed objections from FTX debtors, who argued that the amended proof of claim (POC) was untimely and aimed at stalling the bankruptcy proceedings. Instead, Dorsey sided with 3AC liquidators, stating that any delays in filing were primarily due to FTX’s failure to provide essential records.
“The evidence suggests that the delay in filing the Amended Proof of Claim was, in large part, caused by the Debtors themselves,”
Dorsey noted.
He further highlighted that 3AC liquidators had consistently sought the necessary information, but FTX debtors repeatedly delayed sharing it.
Initially, 3AC liquidators filed a $120 million claim in June 2023 as part of FTX’s bankruptcy proceedings. However, in November 2024, they significantly increased the claim, citing breaches of contract, unjust enrichment, and fiduciary duty violations. According to the liquidators, FTX had liquidated $1.53 billion of 3AC’s assets in 2022 to cover $1.33 billion in liabilities—a move they argue harmed 3AC creditors and should be considered avoidable.
FTX debtors pushed back against the expanded claim, asserting that the initial filing lacked sufficient details and failed to indicate the full amount 3AC would later claim. They also contended that the amendment was submitted too late to be considered.
Despite these objections, Judge Dorsey ruled in favor of 3AC liquidators, allowing the increased claim to proceed, marking another major development in the ongoing legal battle over FTX’s bankruptcy.
Meanwhile, in a separate legal battle, a Singaporean court ruled that proceedings concerning a $140 million dispute involving 3AC’s liquidators, Teneo Capital, and DeFiance Capital must take place within Singapore. This decision came despite objections from the liquidators, adding another layer of complexity to the ongoing legal challenges surrounding the defunct hedge fund.
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