FTX Bankruptcy Court Approves 3AC’s $1.53B Claim, Reshaping Creditor Payouts

A Delaware bankruptcy court has approved Three Arrows Capital's (3AC) petition to expand its claim against FTX from $120 million to $1.53 billion. The decision could significantly impact creditor payouts in the ongoing FTX bankruptcy case.

3AC, once a leading crypto hedge fund with over $3 billion in assets, collapsed in 2022 while maintaining deep financial ties to Sam Bankman-Fried’s FTX. The hedge fund initially filed a $120 million claim in July 2023 but later discovered that FTX liquidated $1.53 billion of its assets just two weeks before 3AC entered liquidation. The hedge fund argued that FTX used the funds to cover a $1.3 billion liability without sufficient justification.

FTX, which began distributing funds to creditors in February 2025, claimed the $1.3 billion was collateral for a loan it made to 3AC. However, the court ruled there was insufficient evidence to support FTX’s claim, allowing 3AC to pursue a larger share of the remaining assets.

FTX argued that 3AC’s amended claim should have been filed earlier, as it complicates the reorganization process. However, the court determined the delay was justified, citing missing financial records and a lack of cooperation from 3AC’s founders, Zhu Su and Kyle Davies.

3AC’s collapse played a key role in the broader crypto market crash of 2022. After its failure, Su was sentenced to four months in prison in Singapore, while Davies faced no charges. The founders later launched OPNX, a short-lived crypto exchange for trading bankruptcy claims, which shut down in February 2024.

With 3AC now holding a much larger claim in the FTX case, the ruling raises new questions about creditor distributions and the ongoing fallout from both firms’ failures.