FTX Bankruptcy Hit by Court Ruling Favoring 3AC’s $1.53 Billion Claim

A Delaware bankruptcy court sided with failed hedge fund Three Arrows Capital (3AC), approving a dramatic increase in its claim against FTX from $120 million to $1.53 billion. The ruling, which comes as FTX continues its bankruptcy process, introduces new complexities for creditor payouts and raises questions about FTX’s handling of funds in its final days.Court Approves 3AC’s Expanded ClaimThe legal dispute involves allegations that FTX liquidated $1.53 billion of 3AC’s assets just two weeks before the hedge fund itself collapsed in 2022. FTX argued that the liquidation was necessary to settle a $1.3 billion loan obligation, but the court reportedly found insufficient evidence to support this claim. The court’s decision to approve 3AC’s revised claim significantly reshapes how remaining FTX assets may be distributed among creditors. FTX’s estate opposed the claim expansion, arguing that 3AC’s request came too late in the bankruptcy process.Interesting turn of events. I didn't know this before, but not surprised either as they (FTX/3AC) were "close".I am curious if FTX had anything to do with the LUNA/UST crash/depeg in May 2022? https://t.co/oubjKHvfMC— CZ

Mar 17, 2025 - 22:44

FTX Bankruptcy Hit by Court Ruling Favoring 3AC’s $1.53 Billion Claim

A Delaware bankruptcy court sided with failed hedge fund Three Arrows Capital (3AC), approving a dramatic increase in its claim against FTX from $120 million to $1.53 billion. The ruling, which comes as FTX continues its bankruptcy process, introduces new complexities for creditor payouts and raises questions about FTX’s handling of funds in its final days.

Court Approves 3AC’s Expanded Claim

The legal dispute involves allegations that FTX liquidated $1.53 billion of 3AC’s assets just two weeks before the hedge fund itself collapsed in 2022. FTX argued that the liquidation was necessary to settle a $1.3 billion loan obligation, but the court reportedly found insufficient evidence to support this claim.

The court’s decision to approve 3AC’s revised claim significantly reshapes how remaining FTX assets may be distributed among creditors. FTX’s estate opposed the claim expansion, arguing that 3AC’s request came too late in the bankruptcy process.

Interesting turn of events. I didn't know this before, but not surprised either as they (FTX/3AC) were "close".I am curious if FTX had anything to do with the LUNA/UST crash/depeg in May 2022? https://t.co/oubjKHvfMC— CZ