A U.S. bankruptcy court has permitted the liquidators of the defunct hedge fund Three Arrows Capital (3AC) to expand their claim against FTX to $1.53 billion. The court dismissed objections from FTX’s debtors, stating that 3AC had provided adequate notice and was hindered by FTX's delay in sharing necessary records. Judge John T. Dorsey noted that the delays were largely due to FTX's actions. The ruling allows 3AC’s liquidators to pursue recovery from FTX's bankruptcy estate, further complicating existing claims. Initially, 3AC filed a $120 million claim in June 2023, but has since expanded it to include allegations of breach of contract and fiduciary duty related to the collapse of the crypto market in 2022. 3AC was once a leading crypto hedge fund but collapsed after incurring significant losses, leading to its court-ordered liquidation and a subsequent rush of liquidations across the crypto industry.

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