14-3-2025 – Liquidators of Three Arrows Capital (3AC) have secured approval from the American bankruptcy judiciary to substantially increase their financial claim against the beleaguered cryptocurrency exchange FTX.
The Delaware court’s ruling, delivered by Judge John Dorsey, marks a significant shift from the original $120 million claim lodged in June 2023. The decision came despite vigorous opposition from FTX’s legal representatives, who had characterised the amended claim as an untimely manoeuvre designed to impede the exchange’s bankruptcy proceedings.
Most notably, the court’s findings highlighted FTX’s own role in the prolonged timeline, with Judge Dorsey particularly critical of the exchange’s repeated postponements in furnishing essential documentation. “The tardiness in claim amendment stems predominantly from the debtors’ own actions,” the judge remarked.
The expanded claim, submitted in November 2024, encompasses allegations of contractual breaches, improper enrichment, and violations of fiduciary responsibilities. At the heart of the dispute lies the assertion that FTX commandeered $1.53 billion of 3AC’s assets to settle various outstanding obligations in 2022, a move that 3AC’s representatives argue could have been prevented through timely disclosure of pertinent information.
Whilst FTX has commenced compensating its affected customers, this latest development adds another layer of complexity to what has become one of the cryptocurrency sector’s most notorious financial debacles. The saga continues to reverberate throughout the digital assets landscape, affecting countless investors across the globe.
The ruling underscores the intricate web of financial obligations and alleged misconduct that characterised the final months of FTX’s operations, whilst simultaneously highlighting the ongoing efforts to untangle the complex aftermath of its collapse.
