The Delaware bankruptcy court with the FTX field approved Thursday a request from Three Arrows Capital (3AC) to considerably extend its complaint against the succession of $ 120 million to $ 1.53 billion, marking a major development in the continuous fall in the collapse of Crypto Empire by Sam Bankman Fried.
3AC, once a hedgehist fund in dominant crypto with more than $ 3 billion in declared net assets, collapsed in 2022 when he still had deep financial links with FTX, Sam Bankman Fried, soon to be in the course of Crypto. The hedge fund initially filed proof of claim worth $ 120 million against FTX in July 2023 – adding its name to a long list of users and investors in FTX who lost money because of its sudden insolvency.
In November 2024, 3ac liquidators changed their complaint after discovering new evidence suggesting that FTX had liquidated $ 1.53 billion in 3AC assets only two weeks before the coverage fund initiated its own liquidation procedure two years earlier. They argued that the liquidation of FTX of 3ac funds had been carried out to satisfy a liabilities of $ 1.3 billion in FTX, an obligation that 3ac affirmed was not sufficiently supported.
The bankruptcy of FTX said that the liabilities of $ 1.3 billion represented guarantees for a 3AC FTX loan, but the court ruled in favor of 3AC, finding insufficient evidence to support the loan request from FTX.
The decision allows 3AC to continue a much greater part of the remaining assets of the FTX, which could reshape the payments of the creditors.
FTX, which began to distribute funds to creditors in February 2025, said that the extended complaint should have arrived earlier, arguing that it would hang on other creditors and would complicate its reorganization plan. The court, however, determined that the delay of 3ac was justified, since the liquidators discovered only the full extent of their complaint in mid-2010 due to the missing financial files of the FTX and the lack of cooperation of the founders of 3ac, Zhu Su and Kyle Davies.
3AC, founded in 2012, had become one of the most influential financial companies in the cryptocurrency industry by 2022. Its collapse was among the first and largest dominoes to die for in front of the wider crypto market imploded in 2022, which finally sparked the chain of events which revealed fraud in the crypire of Sam Bankman Fredge.
Bankman Fried is currently pursuing an appeal from his criminal conviction and 25 years in prison. After the collapse of 3ac, SU was detained in Singapore and sentenced to four months in prison for having omitted to cooperate with 3ac liquidators. Davies did not face any charge linked to the collapse of the hedge fund.
The founders of 3AC met in 2023 to launch a short -term crypto exchange called OPNX – designed to allow users to exchange allegations of failing for failing cryptographic companies – which closed its doors in February.
With the court’s decision, 3ac liquidators now have a much more important position in the FTX. Bankruptcy procedure, raising questions about how the extended complaint will have an impact on distributions to other creditors. The decision also highlights the lack of transparency at the same time at the FTX and the 3AC – still complicating efforts to unravel the assets and the obligations of companies.
