A US bankruptcy court has approved the liquidators of the defunct 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 arguments from FTX's debtors that the amended proof of claim was untimely, pointing out that the delay was largely due to FTX's failure to provide necessary documents. Initially, 3AC filed a $120 million claim in June 2023, which included allegations of breach of contract and unjust enrichment regarding $1.53 billion in hedge fund assets liquidated to settle $1.33 billion in liabilities. The liquidators argued that necessary information from FTX was delayed, impacting their ability to amend their claim timely. In light of the evidence, Dorsey acknowledged the liquidators' diligence in seeking information and confirmed that the delay in filing was significantly caused by the debtors' own actions.

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