On March 14, PANews, citing Decrypt, reported that the US Bankruptcy Court has approved the hedge fund Three Arrows Capital (3AC) to expand its compensation claim against FTX to $1.53 billion, despite opposition from the exchange's creditors. According to the ruling, 3AC's late filing of the amended claim was due to FTX's failure to timely provide relevant records, hindering the investigation process.
Initially, 3AC had filed a $120 million compensation claim in June 2023, which was later expanded with additional allegations of breach of contract, unjust enrichment, and breach of fiduciary duty. Court records show that on June 12, 2022, 3AC held $1.53 billion in assets on FTX, but was forced to liquidate just two days later to pay off a $1.3 billion debt.
3AC officially entered the liquidation process in the British Virgin Islands in June 2022. Founders Su Zhu and Kyle Davies went bankrupt after heavily leveraging assets like TerraUSD (UST), triggering a domino effect in the cryptocurrency industry.
