Delaware bankruptcy court handles FTX estate Approved the petition On Thursday, from Three Arrow Capital (3AC) expanded its claim on estate from $120 million to $1.53 billion, marking a significant development in the ongoing collapse of Sam Bankman-Fried’s Crypto Empire.
3AC, once a dominant crypto hedge fund, reported net worth over $3 billion, went bankrupt in 2022, while it still has deep financial ties to FTX, Sam Bankman-Fried’s imminent collapse of cryptocurrency exchange. Hedge funds initially filed a $120 million proof of claim to FTX in July 2023 and added their name to a long list of users and investors of FTX who lost money due to their sudden bankruptcy.
In November 2024, 3AC liquidators liquidated $1.53 billion in assets two weeks before discovering new evidence that FTX began its own liquidation process two years ago. They believe that FTX’s liquidation of 3AC funds is to meet FTX’s $1.3 billion responsibility, which is a 3AC’s claim of obligations is not fully confirmed.
FTX’s bankruptcy said the $1.3 billion liability represents the collateral of FTX’s loan loan, but the court ruled to support 3AC, which was not enough to support FTX’s loan claims.
The ruling allows 3AC to pursue a large portion of FTX’s remaining assets, which may reshape creditor spending.
FTX began allocating funds to creditors in February 2025, and he said the expanded claims should be filed earlier and believed it would cover other creditors and complicate its restructuring plan. However, the court determined that the delays for 3AC are justified, as liquidators discovered their scope of claims in mid-2024 only due to FTX’s lack of financial records and the lack of cooperation between 3AC founders Zhu Su and Kyle Davies.
Founded in 2012, 3AC has grown into one of the most influential financial companies in the cryptocurrency industry by 2022. Its collapse was one of the first and largest dominoes before the wider cryptocurrency market blast that broke out in 2022, ultimately revealing the fraud of Sam Bankman Fried’s Crypto Empire.
Bankman Fried is currently filing his criminal conviction and appeal for 25 years in prison. After the 3AC collapse, SU was detained in Singapore and sentenced to four months in prison for not working with the liquidator of 3AC. Davis faces no charges related to the hedge fund collapse.
3AC founders reunited in 2023 to launch a brief crypto exchange called OPNX, designed to enable users to make bankruptcy claims against failed cryptocurrency companies – this closure In February.
With the court’s ruling, the liquidator of 3AC now has a significantly larger position in FTX. Bankruptcy proceedings raise questions about how to affect the distribution of other creditors. The ruling also highlights the lack of transparency in FTX and 3AC, which further complicates efforts to lift company assets and obligations.
