On March 14, PANews, citing Decrypt, reported that the U.S. Bankruptcy Court has approved hedge fund Three Arrows Capital (3AC) to expand its claim against FTX to $1.53 billion, despite objections from the exchange's creditors. According to the ruling, 3AC’s late filing for an amended claim was due to FTX’s failure to provide relevant records in a timely manner, which hindered the investigation process.
Initially, 3AC filed a $120 million claim in June 2023, later expanding it to include allegations of contract breaches, unjust enrichment, and fiduciary duty violations. Court documents reveal that on June 12, 2022, 3AC held $1.53 billion in assets on FTX, but just two days later, the fund was forced to liquidate to repay a $1.3 billion debt.
3AC officially entered liquidation proceedings in the British Virgin Islands in June 2022. Its founders, Su Zhu and Kyle Davies, went bankrupt after making highly leveraged bets on assets like TerraUSD (UST), triggering a domino effect in the cryptocurrency industry.