{"id":51840,"date":"2025-03-14T09:03:19","date_gmt":"2025-03-14T09:03:19","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=51840"},"modified":"2025-03-14T09:03:19","modified_gmt":"2025-03-14T09:03:19","slug":"three-arrows-capital-boosts-ftx-bankruptcy-claim-to-1-53-billion-after-court-approval","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=51840","title":{"rendered":"Three Arrows Capital Boosts FTX Bankruptcy Claim to $1.53 Billion After Court Approval"},"content":{"rendered":"

A US bankruptcy court has ruled in favor of liquidators of Three Arrows Capital (3AC), allowing them to increase their claim against the collapsed crypto exchange FTX from $120 million to $1.53 billion.<\/span><\/p>\n

In a 13 <\/span>March 2025 ruling<\/span><\/a>, Chief Judge John Dorsey of the US Bankruptcy Court for the District of Delaware dismissed arguments from FTX\u2019s debtors, who had opposed the amended claim as untimely and disruptive to the proceedings. <\/span><\/p>\n

Instead, Dorsey stated that the delay was primarily due to FTX\u2019s failure to provide key financial records to 3AC liquidators <\/span>in a timely manner<\/span>.<\/span><\/p>\n

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FTX\u2019s Delayed Cooperation Prolonged The Process<\/span><\/h2>\n

\u201cThe evidence suggests that the delay in filing the Amended Proof of Claim was, in large part, caused by the debtors themselves,\u201d Dorsey noted. <\/span><\/p>\n

He added that 3AC\u2019s liquidators had been diligent in their attempts to obtain necessary financial data, but FTX repeatedly withheld the information, slowing the claim revision process.<\/span><\/p>\n

Initially, Three Arrows Capital\u2019s liquidators had filed a $120 million claim in June 2023 as part of FTX\u2019s bankruptcy case. However, in November 2024, they sought to expand the claim, alleging breach of contract, unjust enrichment, and breach of fiduciary duty by FTX.<\/span><\/p>\n

According to 3AC\u2019s liquidators, FTX held $1.53 billion in hedge fund assets, which were liquidated to cover $1.33 billion in liabilities in 2022. They argue that these transactions were avoidable and harmed 3AC\u2019s creditors, making them eligible for compensation.<\/span><\/p>\n

FTX\u2019s debtors had objected to the amended claim, stating that the original filing failed <\/span>to adequately outline the nature and scope of 3AC\u2019s claims<\/span>. They also argued that the increased claim amount came too late and should not be allowed.<\/span><\/p>\n

US court gives Three Arrows nod to increase its FTX claim to $1.53B<\/p>\n

Its liquidators also pursued claims against collapsed crypto firm Terraform Labs through a $1.3 billion claim in Terra\u2019s bankruptcy case.#PraeLegal<\/a> #Ftx<\/a> $FTX<\/a> $ftt<\/a> $lunc<\/a> $luna<\/a> pic.twitter.com\/VWoZ6LF0kV<\/a><\/p>\n

\u2014 PraeLegal (@PraeLegal) March 14, 2025<\/a><\/p>\n\n

Once one of the largest crypto hedge funds, Three Arrows Capital collapsed in June 2022, leading to a series of legal battles. <\/span><\/p>\n

In addition to its FTX bankruptcy claim, 3AC\u2019s liquidators have also pursued $1.3 billion in claims against Terraform Labs, the company behind the failed Terra ecosystem.<\/span><\/p>\n

Meanwhile, FTX, which filed for bankruptcy in November 2022, continues its <\/span>own<\/span> legal efforts to reclaim lost funds. <\/span><\/p>\n

The exchange has filed lawsuits against entities including SkyBridge Capital, Binance, and Waves founder Aleksandr Ivanov, seeking to recover assets lost under former CEO Sam Bankman-Fried\u2019s leadership.<\/span><\/p>\n

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FTX Settles Lawsuit With Bybit<\/span><\/h2>\n

Last year, the FTX bankruptcy estate\u00a0<\/span>reached a $228 million<\/span><\/a> settlement with the\u00a0cryptocurrency\u00a0exchange Bybit to recover funds for repaying former FTX customers and creditors.<\/span><\/p>\n

Under the\u00a0<\/span>terms of the settlement<\/span>, FTX will retrieve $175 million in digital assets held by Bybit, and an additional $53 million in BIT tokens, which will be sold to Mirana Corp, Bybit\u2019s investment arm.<\/span><\/p>\n

FTX <\/span>originally<\/span> launched a $1 billion lawsuit against Bybit and Mirana in late 2023. It alleged that these entities used special privileges and \u201cVIP\u201d access to pre-emptively withdraw $327 million in digital assets and cash in the days leading up to FTX\u2019s downfall.<\/span><\/p>\n

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\n

Key Takeaways<\/h3>\n

3AC\u2019s claim against FTX increased from $120 million to $1.53 billion after court approval.<\/span> <\/p>\n

The judge ruled that FTX delayed providing key financial records, prolonging the claim process.<\/span> <\/p>\n

FTX continues legal battles to recover funds, including past settlements and lawsuits against other entities.<\/span> <\/p><\/div>\n

The post Three Arrows Capital Boosts FTX Bankruptcy Claim to $1.53 Billion After Court Approval<\/a> appeared first on 99Bitcoins<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

A US bankruptcy court has ruled in favor of liquidators of Three Arrows Capital (3AC), allowing them to increase their claim against the collapsed crypto exchange FTX from $120 million to $1.53 billion. In a 13 March 2025 ruling, Chief Judge John Dorsey of the US Bankruptcy Court for the District of Delaware dismissed arguments […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-51840","post","type-post","status-publish","format-standard","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/51840"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=51840"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/51840\/revisions"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=51840"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=51840"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=51840"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}