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FTX compensates 1.53 billion USD to Three Arrows Capital
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The Delaware bankruptcy court allows Three Arrows Capital (3AC) to increase its compensation claim from 120 million USD to 1.53 billion USD against FTX. The decision further heats up the legal battle among creditors, affecting FTX's restructuring process.
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In November 2024, the liquidator of 3AC submitted a request to increase the compensation after discovering several actions deemed "illegal" during FTX's handling of assets. 3AC argues that FTX unilaterally liquidated assets worth 1.53 billion USD to settle debts, harming creditors.
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In addition, the ambiguity regarding procedures and FTX's continuous evasion of the bankruptcy process has prolonged since February when FTX began distributing assets.
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Judge John Dorsey sided with 3AC, determining that the new compensation claim does not affect the bankruptcy process, but rather FTX is the cause of the delays.
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The new decision is expected to directly impact FTX's asset distribution plan. Initially, FTX stated it prioritized small creditors, but the large claim from 3AC could reduce the repayment rate. The relationship between FTX and 3AC continues to be in the spotlight as the legal scandal between the two escalates.