Key takeout
- 3AC liquidators increased their bankruptcy claim against FTX to $1.53 billion.
- The court approved the expanded claim, which included breach of contract and unfair enrichment.
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Three Arrows Capital (3AC) liquidators have won approval to increase bankruptcy claims against FTX from $120 million to $1.5 billion, according to a court filing shared today by FTXCREDITOR co-founder Michael Bottjer.
Russell Krumpler and Christopher Farmer, appointed to administer the liquidation of 3ACs in the British Virgin Islands (BVI), originally filed a Proof of Claim (POC) for $120 million, with the aim of recovering assets that could have been improperly transferred prior to the 3AC declared bankruptcy declaration.


However, after further investigation and discovery, they discovered new evidence that as of June 12, 2022, 3AC had approximately $1.5 billion in assets on the FTX exchange. Almost all of these assets were liquidated from June 12th to June 14th, 2022 to meet the $1.3 billion liability for FTX.
These findings led to allegations that liquidators would amend the POC to increase the claims from $120 million to $1.5 billion.
The FTX debtor opposed the amendment, claiming that there was no proper notice and that it was too late. However, the court held that the original claim provided sufficient notice due to the same core event, both claims related to the liquidation of the 3AC's FTX account from June 12th to 14th, 2022.
The judge noted that the FTX debtor owns the relevant financial information but withheld it from the 3AC liquidator, contributing to the delay. FTX argued that the increase in claims disrupts the reorganization plan, but the court did not find any concrete evidence to support the claim.
Ultimately, the court upheld the 3AC and allowed the $1.5 billion amended POC to proceed.
Apart from FTX, 3AC liquidators sought a $1.3 billion claim against Terraform Labs. The filing was filed last August in the US Bankruptcy Court for the District of Delaware.
The liquidators claim that Terraform Labs misunderstood 3AC about the stability of Terrausd (UST) and Luna (Luna) and artificially inflated prices through market manipulation. This led 3AC to invest heavily in these tokens, resulting in significant financial losses when the Terra ecosystem collapsed in May 2022.
Do Kwon, co-founder of Terraform Labs, faces multiple federal fraud charges related to the collapse of UST and Luna. His trial is scheduled to begin on January 26th, 2026.
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