Sophia Patel's Latest Scoop: 3AC's Mega Claim Triples Against FTX, Rocking Crypto Bankruptcy Proceedings
3AC Secures Court Victory, Bolsters FTX Dispute with $1.5 Billion Demand
In a high-stakes move, Three Arrows Capital (3AC) has won a major victory, gaining court approval to expand their claim against crypto exchange FTX from a mere $120 million to a whopping $1.5 billion.
This ruling, which comes from District Court of Delaware, challenges FTX's asset liquidation practices and questions the ongoing crypto bankruptcy proceedings. Judge John Dorsey, who presided over the ruling, stated that FTX's objections were unfounded due to their failure to provide crucial financial records, hindering 3AC's liquidators from signaling their intent to increase their claim.
FTX Counterattacks, Citing Complexities in Restructuring
FTX's legal team immediately opposed 3AC's expanded $1.5 billion claim, arguing that it would add significant uncertainty and complicate their restructuring process. They mentioned that the sudden claim surge was unwelcome and could disrupt creditor repayments. However, the court dismissed their concerns as unconvincing.
This ruling now exposes FTX's financial obligations and their strategy for asset distribution to creditors.
Unraveling the Web of Crashed Crypto Giants
The battle between 3AC and FTX is one of many high-profile disputes to emerge from the 2022 crypto market collapses. Once managing over $3 billion in assets, 3AC crumbled following the Terra-LUNA implosion, leading to a domino effect that eventually caused FTX's own downfall.
Beyond FTX, 3AC is also pursuing a $1.3 billion claim against Terraform Labs, adding fuel to the contentious legal battles in the crypto space. Moreover, former Binance CEO Changpeng Zhao raised suspicions about FTX's role in Terra's collapse, hinting at deeper connections between these major events.
As bankruptcy cases continue to unfold, the crypto world is eagerly watching how creditors, regulators, and ex-executives navigate the next phase of the crypto legal frenzy, all while FTX's token (FTT) unexpectedly soars over 7.2% in the past 24 hours, defying expectations.
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Sophia Patel, a digital marketing and blockchain writing veteran, shares her expertise in creating compelling stories and advancing thought leadership content. Based in India, she's had the privilege of working with several top firms and global crypto startups. Now, she's helping Coincu.com connect with a passionate audience and elevate its status as a trusted crypto news source.
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