A new court decision has been made regarding Three Arrows Capital (3AC) and FTX, whose bankruptcies caused major collapses in the cryptocurrency market.
A US bankruptcy court has allowed the liquidators of Three Arrows Capital to increase their claims against the collapsed FTX from $120 million to $1.53 billion.
The U.S. Bankruptcy Court for the District of Delaware ruled in favor of 3AC’s amended claims, despite FTX’s objections that the demand was excessive.
In its ruling, the court said the 3AC liquidators had given timely notice of the rectification request and that the alleged significant delay was due to the delayed sharing of records by the FTX debtors.
“The evidence suggests that the 3AC liquidators were diligent in obtaining information and that despite having all the information, FTX repeatedly delayed providing it to them.”
3AC liquidators first filed a $120 million claim in FTX’s bankruptcy case in June 2023. They later expanded the claim in November 2024, citing claims including breach of contract, unjust enrichment and breach of fiduciary duty.
In response to 3AC's request, the FTX bankruptcy estate argued that 3AC's new demands were “excessively large” and that if accepted, they would cause “significant harm” to them and disrupt the implementation of the restructuring plan.
FTX began its first distribution of funds to creditors last month and plans to pay the remaining creditors in the coming months.
*This is not investment advice.
