3AC Wins Court Approval to Expand FTX Claim to $1.53 Billion

Highlights:

• The U.S. court has allowed 3AC liquidators to raise their claim against FTX from $120 million to $1.53 billion.
• 3AC liquidators say FTX unfairly liquidated assets and withheld key financial records.
• FTX is facing multiple lawsuits, including claims from 3AC, Binance, and SkyBridge Capital.

A U.S. bankruptcy court has permitted Three Arrows Capital (3AC) liquidators to increase their FTX claim from $120 million to $1.53 billion. Under the ruling made by Judge John Dorsey, 3AC proved its claim was reasonable, and most delays stemmed from FTX’s time management issues in providing records. The ruling dismissed the objections that the debtors of FTX had raised. In their submission, FTX argued that the amendment was untimely and was an unjust attempt to slow the bankruptcy proceedings.

🚨 U.S. Court Approves 3AC’s $1.53B Claim Against FTX!

The U.S. bankruptcy court has approved Three Arrows Capital (3AC) liquidators' claim expansion against FTX to $1.53B, dismissing objections from FTX debtors.

🔹 3AC alleges FTX unfairly liquidated and seized $1.33B in… pic.twitter.com/c3ixuQj5oW

— Followin (@followin_io) March 14, 2025

Judge Dorsey acknowledged that 3AC liquidators made many attempts to obtain the necessary information from FTX. The court pointed out many instances where FTX debtors did not comply with the request of the liquidators, who had asked for some documents that FTX had in their possession.

The creditors of FTX under CEO John Ray III objected to the new claim, saying that the original proof of claim was insufficient to inform them of the amount the liquidators would be claiming. The court established that FTX received enough notice from the initial filing to understand that additional claims could emerge, thus validating the action of the liquidators.

3AC was one of the biggest crypto hedge funds before its bankruptcy in 2022. In addition, it managed assets exceeding $3 billion. The fund declared bankruptcy due to financial losses that arose through its investments linked to the failed TerraUSD stablecoin platform and other leveraged positions. Creditors began asset recovery procedures from multiple trading platforms after 3AC collapsed. FTX, which declared bankruptcy in November of the same year, was among the platforms the creditors went after.

3AC Accuses FTX of Unfair Liquidation

The liquidators have accused FTX of seizing $1.33 billion worth of hedge fund assets. They allege that FTX used the funds to settle debts two days before 3AC defaulted. They argue that these transactions happened unnecessarily, which reduced possible recovery opportunities for creditors. The claim also includes accusations of breach of contract, unjust enrichment, and breach of fiduciary duty.

The liquidators contend that FTX undervalued the seized assets, making the transactions unfair. Moreover, they claim that the exchange withheld key financial records, which forced them to analyze raw data to determine losses. FTX claims an unidentified 3AC-linked individual began the asset liquidation process in their response.

The liquidators of 3AC maintain in their modified claim that FTX should have restored all assets instead of liquidating them. According to the amended claim, FTX chose to pursue their own interests without considering the creditors of 3AC.

FTX Struggles with Ongoing Bankruptcy Claims

The exchange estate of FTX initiated a lawsuit against Binance and CEO Changpeng Zhao in November to retrieve $1.76 billion in cryptocurrency from a repurchase agreement.

In addition, FTX filed a $100 million lawsuit against SkyBridge Capital and its founder, Anthony Scaramucci, alleging that former FTX CEO Sam Bankman-Fried misused funds for investments. Another lawsuit is targeting Waves founder Aleksandr Ivanov for $80 million in transactions involving Alameda Research.

The liquidators of 3AC have filed a demand for compensation against Terraform Labs. They initiated a $1.3 billion lawsuit against Terraform Labs, arguing that the TerraUSD and Luna tokens were among the misleading factors behind the collapse of 3AC.