TechFlow news — On March 14, according to Decrypt, a U.S. Bankruptcy Court in Delaware approved the liquidators of the defunct hedge fund Three Arrows Capital (3AC) to expand their claim against FTX to $1.53 billion, rejecting objections from FTX debtors that the move was untimely and unfair. Delaware Bankruptcy Court Judge John T. Dorsey ruled on March 14 that 3AC’s liquidators had provided sufficient notice of their claim, while their investigation had been hindered by FTX's failure to timely share relevant records.
In the ruling, the judge wrote: "The evidence shows that the delay in filing the amended proof of claim was largely caused by the debtor itself." FTX’s debtors, led by CEO John Ray III, opposed the amendment, arguing it introduced new legal theories and significantly increased the claim amount. However, the court found that 3AC’s original filing had already put FTX “on notice of the possibility of the later-asserted claims,” thus overruling the debtors’ objection.
According to court documents, as of June 12, 2022, 3AC held assets worth $1.53 billion on FTX. Within the following two days, these assets were liquidated to repay a $1.3 billion debt owed to FTX. 3AC’s liquidators initially filed a $120 million claim in FTX’s bankruptcy case in June 2023, but later expanded the claim to include allegations of breach of contract, unjust enrichment, and breach of fiduciary duty.
