A U.S. bankruptcy court has ruled in favor of Three Arrows Capital (3AC) liquidators, allowing them to increase their claim against collapsed crypto exchange FTX from $120 million to $1.53 billion.
In a March 13 ruling, Chief Judge John Dorsey of the U.S. Bankruptcy Court for the District of Delaware dismissed FTX’s argument that the amended claim was untimely and an attempt to stall bankruptcy proceedings.
“The evidence suggests that the delay in filing the Amended Proof of Claim was, in large part, caused by the Debtors themselves,” Dorsey stated.
“The Liquidators were diligent in obtaining the information, but the Debtors repeatedly delayed giving it to them.”
3AC Claims FTX Liquidated $1.53 Billion in Hedge Fund Assets

3AC liquidators initially filed a $120 million claim in June 2023, which they later expanded in November 2024, alleging:
🔹 Breach of contract
🔹 Unjust enrichment
🔹 Breach of fiduciary duty
The liquidators claim that FTX controlled $1.53 billion in 3AC assets, which were liquidated to cover $1.33 billion in liabilities in 2022.
They argue that these transactions were avoidable and harmed 3AC’s creditors, further accusing FTX’s debtors of deliberately withholding key financial records that would have exposed the liquidation.
FTX opposed the claim, stating that the original proof of claim (POC) didn’t provide enough detail and that the amended claim came too late. However, Judge Dorsey ruled against FTX, emphasizing that the delays were caused by the exchange itself.
The Collapse of 3AC and Ongoing Legal Battles
Before its June 2022 collapse, Three Arrows Capital was one of the largest crypto hedge funds, managing over $3 billion in assets.
🔹 3AC liquidators have also filed a $1.3 billion claim against Terraform Labs in its bankruptcy case.
🔹 FTX has been actively pursuing its own recovery efforts, filing lawsuits to reclaim lost funds.
FTX’s Ongoing Legal Disputes
Since filing for bankruptcy in November 2022, FTX has been aggressively pursuing lawsuits to recoup funds, including:
🔹 A lawsuit against SkyBridge Capital and Anthony Scaramucci to recover funds spent on sponsorship and investments.
🔹 A $1.76 billion lawsuit against Binance and former CEO Changpeng Zhao, alleging improper transfers related to a July 2021 repurchase deal.
🔹 Legal action against Waves founder Aleksandr Ivanov, seeking $80 million linked to Alameda Research transactions.
With 3AC’s increased claim now approved, FTX’s remaining assets face additional pressure, further complicating the exchange’s ongoing bankruptcy proceedings.