A US bankruptcy court has allowed the liquidators of the failed crypto hedge fund Three Arrows Capital (3AC) to raise their claim against the collapsed exchange FTX from $120 million to $1.53 billion. Chief Judge John Dorsey dismissed FTX’s debtors’ objections regarding the timeliness of this amended claim, stating that the delays were primarily due to FTX not providing necessary records in a timely manner. Initially, 3AC liquidators had filed the claim in June 2023 and later added allegations of breach of contract, unjust enrichment, and breach of fiduciary duty. They allege that FTX possessed $1.53 billion in the hedge fund’s assets, contributing to significant harm to 3AC creditors. The court ruling emphasizes the liquidators' diligent efforts to gather information and the responsibility of FTX for the delays. This increased claim emerges amid ongoing bankruptcy proceedings for FTX, which has also pursued legal actions to recover funds from various entities as part of its recovery efforts.

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