US court approves Three Arrows Capital's $1.53 billion claim against FTX
A US bankruptcy court has approved 3AC's expanded $1.53 billion claim against FTX.
FTX's debtors objected, but the court dismissed their claims as invalid.
A US bankruptcy court has granted the liquidators of collapsed hedge fund Three Arrows Capital (3AC) a request to expand their claims against FTX to $1.53 billion. The ruling, issued by Judge John T. Dorsey of the US Bankruptcy Court for the District of Delaware, rejected the FTX debtors' objections and allowed 3AC to seek greater compensation.
The court determined that 3AC's liquidators had provided sufficient notice of their claims. Judge Dorsey noted that the delay in filing the claims was primarily due to FTX's failure to provide key financial records on time.
FTX's debtors, led by CEO John Ray III, opposed this expansion. They argued that the amendment introduced new legal claims and significantly increased the amount sought. However, the court ruled that 3AC's original request had already notified FTX of the potential claims, rendering the objections invalid.
