PANews reported on March 14 that according to Decrypt, the U.S. Bankruptcy Court has approved the liquidated hedge fund Three Arrows Capital (3AC) to expand its claim against FTX to $1.53 billion , rejecting the objections of FTX's debtors. The court ruled that 3AC delayed submitting a revised claim application because FTX failed to provide relevant records in a timely manner, which hindered the investigation.
3AC initially filed a $120 million claim against FTX in June 2023, which was later expanded to include allegations of breach of contract, unjust enrichment, and breach of fiduciary duty. Court documents show that 3AC held $1.53 billion in assets in FTX on June 12, 2022, but was liquidated two days later to repay $1.3 billion in debt.
3AC entered liquidation proceedings in the British Virgin Islands in June 2022. Founders Su Zhu and Kyle Davies went bankrupt due to the failure of high-leverage bets on assets such as TerraUSD (UST), triggering a chain reaction in the crypto industry.
