Court Approves Three Arrows Capital’s $1.53 Billion Claim Against FTX

Three Arrows Capital (3AC) has won a legal ruling that allows it to increase its claims in the FTX bankruptcy case from $120 million to $1.53 billion. This decision by the U.S. Bankruptcy Court for the District of Delaware follows new findings indicating 3AC's larger dealings with FTX, including allegations of breach of contract and fiduciary duty.

Key points from the ruling include:

3AC’s liquidators initially filed claims in June 2023 related to a $120 million loan.
Investigations revealed FTX had liquidated $1.53 billion in assets shortly before 3AC's liquidation to cover $1.3 billion in liabilities.
The court found that delays in the investigation were largely due to FTX's failure to provide necessary documents.
Judge John T. Dorsey ruled that new evidence justified the increase in claims.

FTX opposed the claim expansion, arguing it was too late and altered the bankruptcy scope. However, these objections were dismissed, allowing 3AC to proceed with its expanded claim.

Meanwhile, former FTX CEO Sam Bankman-Fried is seeking a potential presidential pardon, aligning himself with right-wing figures and appearing on conservative media.

The outcome of 3AC's expanded claim will impact the ongoing bankruptcy process and creditor repayments, with industry observers monitoring the situation closely.