FTX News: Three Arrows Capital Wins Court Approval to Boost Claim Against FTX to $1.53 Billion

In a significant development in the ongoing saga surrounding the collapse of major cryptocurrency exchanges, Three Arrows Capital (3AC) has secured a court ruling that allows it to significantly increase its claim against FTX.

Three Arrows Capital Wins Court Approval to Expand FTX Claim to $1.53B

A US bankruptcy court has ruled in favor of Three Arrows Capital (3AC), allowing the failed crypto hedge fund to increase its claim against the collapsed exchange FTX to $1.53 billion. This decision raises the initial $120 million claim sought by 3AC’s liquidators. According to court filings, 3AC’s liquidators argue that FTX improperly seized assets before the hedge fund collapsed, with $1.53 billion of assets liquidated to satisfy $1.3 billion in liabilities to FTX just two weeks before 3AC’s liquidation commenced. FTX’s bankruptcy estate contested these claims.

Court Approves 3AC’s $1.53B Claim Against FTX

The Delaware bankruptcy court approved a petition from Three Arrows Capital (3AC) to expand its claim against the FTX estate from $120 million to $1.53 billion. 3AC, once a dominant crypto hedge fund, collapsed in 2022 due to its deep financial ties to FTX. The hedge fund initially filed a proof of claim worth $120 million against FTX in July 2023, joining a list of users and investors who lost money from FTX’s insolvency. In November 2024, 3AC’s liquidators amended their claim after discovering new evidence.