3AC Allowed to Expand FTX Claim to $1.5 Billion
A US bankruptcy court has allowed the failed crypto hedge fund Three Arrows Capital to raise its claim against FTX from $120 million to $1.53 billion.
The US Bankruptcy Court for the District of Delaware ruled in favor of 3AC’s revised claims, despite objections from the FTX bankruptcy estate, which argued that the amendment came too late. The court noted that 3AC liquidators provided timely notice and attributed the delay to FTX debtors’ slow record sharing.
The court filing indicated that the Liquidators were diligent in seeking information, but the Debtors consistently delayed sharing the complete information they had.
Three Arrows Capital initially filed a $120 million claim in June 2023 and later sought to expand it to include claims for breach of contract, turnover, unjust enrichment, breach of fiduciary duty, restitution, and other damages.
