The U.S. Bankruptcy Court has authorized liquidators of the liquidator, the three major arrow capital (3AC) to raise claims against the collapsed crypto exchange FTX from $120 million to $1.53 billion.
Chief Justice John Dorsey rejected the FTX debtor’s argument that the 3AC liquidator’s amended proof (POC) is inappropriate and an unjust attempt to slow down the bankruptcy proceedings.
In a ruling in the U.S. Delaware Bankruptcy Court on March 13, Dorsey believes that the 3AC liquidator provided sufficient notice after analyzing all available information and could make changes to it. He said any delay was caused by FTX’s failure to share relevant records in a timely manner.
Chief Justice John Dorsey has approved a liquidator’s motion to demand that hedge fund three arrow capital raise its claim against FTX to $1.53 billion. source:
“The evidence suggests that the delay in filing a revised proof of claim is largely caused by the debtor itself,” Dorsey said.
“The evidence also shows that liquidators are diligent in trying to obtain information, and despite having complete information, the debtor repeatedly delayed handing it over to them.”
The 3ac liquidator initially filed a $120 million claim in FTX’s bankruptcy case in June 2023. Expand in November 2024alleged claims include breach of contract, unfair enrichment and breach of fiduciary obligations.
The liquidator alleges FTX held $1.53 billion in hedge fund assets that have been liquidated and paid back $1.33 billion in liabilities in 2022.
They believe that the transaction is avoidable and causes damage to 3AC creditors, while the FTX debtor has delayed providing information that would be found for liquidation.
The FTX debtor objected to the revised claim, saying the original POC was not sufficient to inform them of the nature and amount of 3ac liquidator requested, which was too late and should not be allowed.
Related: FTX filed for bankruptcy 2 years ago – What is happening now?
forward It collapsed in June 2022Three Arrow Capital was once one of the industry’s largest crypto hedge funds with assets of over $3 billion.
Its liquidator also pursues Claims for collapse Crypto company Terraform Labs claims $1.3 billion in Terra bankruptcy.
Meanwhile, FTX, which filed for bankruptcy in November 2022, has been making its own recovery efforts to recover funds.
Last November, it filed three lawsuits Oppose Skybridge Capital and its founder Anthony Scaramucci to recover funds spent by former FTX CEO Sam “SBF” Bankman to sponsor and invest in the deal.
Another lawsuit filed against crypto exchanges Binance and its former CEO Changpeng Zhaoto recover the $1.76 billion cryptocurrency sent to the exchange by part of the July 2021 repurchase transaction.
Waves founder Aleksandr Ivanov Also in the crosshair In 2022, Alameda Research’s $80 million cryptocurrency was sent to a wave-based decentralized liquidity protocol.
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