Three Arrows Capital Boosts FTX Bankruptcy Claim to $1.53 Billion After Court Approval

The US bankruptcy court has ruled in favor of Three Arrows Capital (3AC) liquidators, allowing them to increase their claim against FTX from $120 million to $1.53 billion. The court dismissed FTX’s debtors’ arguments against the amended claim, stating that the delay was primarily due to FTX’s failure to provide key financial records in a timely manner.

FTX’s delayed cooperation prolonged the process, according to Chief Judge John Dorsey. Three Arrows Capital’s liquidators had initially filed a $120 million claim in June 2023 but sought to expand it in November 2024, alleging breach of contract and other issues by FTX.

Three Arrows Capital collapsed in June 2022, leading to legal battles with FTX and Terraform Labs. Meanwhile, FTX continues its legal efforts to reclaim lost funds by filing lawsuits against various entities.

In a separate development, FTX reached a $228 million settlement with Bybit last year to recover funds for repaying former customers and creditors. This settlement involved the retrieval of digital assets held by Bybit and the sale of BIT tokens to Mirana Corp.

Overall, Three Arrows Capital’s increased claim against FTX, along with FTX’s ongoing legal battles and settlements, highlight the complexities and challenges faced in the aftermath of crypto exchange collapses.