FTX News: 3AC Amps Up Claims Against FTX to $1.53 Billion in Bankruptcy Saga

In a significant development in the ongoing bankruptcy saga of FTX, Three Arrows Capital (3AC) has significantly escalated its claims against the embattled cryptocurrency exchange. Here’s a closer look at the latest developments.

3AC Claims Skyrocket to $1.53 Billion in FTX Bankruptcy Saga

Three Arrows Capital (3AC) has broadened its allegations against FTX to include breach of contract, breach of fiduciary duty, unjust enrichment, and proprietary restitutionary claims. The amended filing came as part of a major victory for 3AC’s liquidators, Russell Crumpler and Christopher Farmer, in their case against FTX. The liquidators initially filed their proof of claim in June 2023 to recover funds related to a $120 million loan allegedly owed by 3AC to FTX. However, further investigation revealed that 3AC’s dealings with FTX were far more extensive.

US Bankruptcy Court Grants 3AC Liquidators Expanded Claim Against FTX

The liquidators of Three Arrows Capital (3AC), a defunct hedge fund, have been granted approval by the US Bankruptcy Court of Delaware to increase their claim against FTX to $1.53 billion, up from $120 million. The court granted permission on Thursday to expand the claim, which was first proposed by 3AC liquidators in November. The appeal to raise the claim against FTX stemmed from allegations that FTX liquidated and seized $1.33 billion worth of 3AC’s funds to settle debts. FTX’s debtors objected to the motion, asserting that the new amended claims came too late and should be disallowed. However, Judge John T. Dorsey ruled that the hedge fund’s liquidators provided sufficient notice of their new claim.