3AC Liquidators Raise Claims Against FTX to $1.53 Billion

The liquidators of the bankrupt cryptocurrency hedge fund Three Arrows Capital (3AC) have been permitted to increase their claim against the bankrupt crypto exchange FTX from $120 million to $1.53 billion, according to court documents.

Chief Judge John Dorsey dismissed objections from the trading platform’s debtors, who argued that the amendment to 3AC’s Proof of Claim (POC) was filed late and hindered the bankruptcy proceedings.

He emphasized that the delay was caused by the actions of the FTX team, which failed to provide the hedge fund’s liquidators with the necessary information in a timely manner. Dorsey noted that 3AC’s bankruptcy managers made good faith efforts to obtain the data.

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

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

For its part, the exchange argued that the initial claim did not disclose the true extent of 3AC’s demands.

Earlier in August 2024, the hedge fund’s bankruptcy managers also demanded at least $1.3 billion from Terraform Labs, the entity behind the Terra ecosystem.