A US bankruptcy court has ruled in favor of Three Arrows Capital’s liquidators, allowing them to increase their claim against the defunct cryptocurrency exchange FTX from $120 million to $1.53 billion.

In a ruling dated March 13, 2025, Chief Judge John Dorsey of the US Bankruptcy Court for the District of Delaware dismissed objections from FTX’s debtors, who argued that the updated claim was untimely and disruptive. He noted that the delay was mainly due to FTX not providing essential financial documents needed by the liquidators in a timely manner.

EXPLORE: Best New Cryptocurrencies to Invest in 2025

FTX’s Delayed Cooperation Extended the Process

“The evidence suggests that the hinderance in filing the amended claim was largely caused by the debtors themselves,” Judge Dorsey stated. He emphasized that the 3AC liquidators acted diligently to obtain the required financial data, but FTX consistently withheld this crucial information, which impeded the review and adjustment of the claim.

Initially, Three Arrows Capital’s liquidators had lodged a $120 million claim in June 2023 as part of the FTX bankruptcy proceedings. However, in November 2024, they sought to boost the claim, alleging breaches of contract, unjust enrichment, and fiduciary duty violations by FTX.

According to the liquidators, FTX mismanaged $1.53 billion in hedge fund assets, which were liquidated to address $1.33 billion in liabilities in 2022. They assert that these transactions were avoidable and detrimental to the interests of 3AC’s creditors, hence qualifying them for compensation.

FTX’s debtors opposed this increased claim, contending that the initial submission did not sufficiently clear up the nature and extent of 3AC’s allegations and argued that the new claim amount was presented too late.

US court supports Three Arrows’ efforts to escalate its claim against FTX to $1.53 billion.

Following the peak of its operations, Three Arrows Capital collapsed in June 2022, prompting numerous legal disputes. In addition to its claim against FTX, the liquidators are also pursuing a $1.3 billion claim against Terraform Labs, the company behind the failed Terra ecosystem.

Meanwhile, FTX, which entered bankruptcy in November 2022, is continuing its legal actions to recover lost assets, having filed lawsuits against several entities, including SkyBridge Capital, Binance, and Aleksandr Ivanov, founder of Waves, to reclaim assets lost under the leadership of former CEO Sam Bankman-Fried.

EXPLORE: 10 Coins with High Returns: Crypto Forecast 2025

FTX Resolves Lawsuit with Bybit

In the previous year, the estate of FTX secured a $228 million settlement with the cryptocurrency exchange Bybit to recoup funds for former FTX customers and creditors. Under the terms of this settlement, FTX is set to reclaim $175 million in digital assets held by Bybit, along with an additional $53 million in BIT tokens, slated to be sold to Bybit’s investment arm, Mirana Corp. FTX initially filed a $1 billion lawsuit against Bybit and Mirana in late 2023, alleging that these companies had exploited special privileges to withdraw $327 million in assets before FTX’s downfall.