Key dealers
- 3AC’s liquidators increased their bankruptcy claim against FTX to $ 1.53 billion.
- The Court approved the extended claim involved in the violation of contracts and unfair enrichment.
Three Arrows Capital’s (3AC) liquidators won approval to increase their bankruptcy against FTX from $ 120 million to $ 1.5 billion, according to a court application shared Today by Michael Bottjer, co-founder of FTXCreditor, a unit that is focused on providing liquidity solutions for creditors affected by FTX bankruptcy.
Russell Crumpler and Christopher Farmer, who were appointed to handle the liquidation of 3AC on the British Virgin Islands (BVI), originally submitted proof of the claim (POC) for $ 120 million, which aims to recover assets that may have been incorrectly transferred before 3AC declared bankruptcy.
After further investigation and discovery, however, they revealed new evidence to indicate that 3AC had approximately $ 1.5 billion in assets on the FTX exchange from June 12, 2022. Almost all of these assets were liquidated between June 12 and June 14, 2022 to satisfy a liability of $ 1.3 billion to FTX.
These results led to the liquidators’ proposal to change POC to increase claim from $ 120 million to $ 1.5 billion
FTX’s debtors opposed the amendment and claimed that it lacked a proper notice and was submitted too late. However, the Court ruled that the original claim gave enough notice, since both claims related to the same core event – the liquidation of 3AC’s FTX account between 12 and 14 June 2022.
The judge noted that FTX’s debtors had relevant financial information but held it back from 3AC liquidators, which helped to submit delays. While FTX claimed that the increased claim would interfere with its reorganization plan, the Court found no concrete evidence that supports this claim.
In the end, the court decided in favor of 3AC, which allowed the changed POC at $ 1.5 billion to continue.
In addition to FTX, 3AC liquidators also applied for a claim of $ 1.3 billion against Terraform Labs. The submission was submitted to the US Bankruptcy Court of the District of Delaware in August last year.
The liquidators claim that Terraform Labs misled 3AC on the stability of Terrausd (UST) and Luna (Luna), artificial raised their prices through market manipulation. This led to 3AC investing heavily in these symbols, resulting in major financial losses when the Terra Ecosystem collapsed in May 2022.
Terraform Lab’s “Founder, DO KWON, is facing several fees for federal fraud related to the collapse of UST and LUNA. His trial is scheduled to begin on January 26, 2026.
