The Delaware Competition Court, which handled the FTX property, on Thursday approved a petition from three Arrows Capital (3AC) to significantly expand its claim against the estate from $ 120 million to $ 1.53 billion, marking a greater development in the ongoing fallout from the collapse of Sam Bankman-Fred’s Crypto Empire.

3AC, once a dominant cryptohed gate fund with over $ 3 billion in reported net assets, collapsed in 2022, while still having deep economic ties to FTX, Sam Bankman-Fred’s soon-to-collapse Crypto Exchange. The Hedge Foundation initially filed a proof of claims of a value of $ 120 million against FTX in July 2023 – adding its name to a long list of users and investors in FTX who lost money as a result of its sudden insolvency.

In November 2024, 3ACS liquidators changed their claims after discovering new evidence suggesting that FTX had liquidated $ 1.53 billion in 3AC’s assets just two weeks before the Hedge Fund began its own liquidation process two years before. They claimed that FTX’s liquidation of 3AC’s funds was carried out to fulfill a $ 1.3 billion liability against FTX, a commitment 3AC claimed was not sufficiently substantiated.

FTX’s bankruptcy said $ 1.3 billion responsible represented security for a loan FTX made at 3AC, but the court gave benefit to 3AC and found insufficient evidence to support FTX’s loan requirements.

The order allows 3AC to pursue a significantly larger part of FTX’s remaining assets that potentially reshape creditor payments.

FTX, which began distributing funds to creditors in February 2025, said the extended claim should have come before, arguing that it would burden other creditors and complicate its reorganization plan. However, the court provided that 3AC’s delay was justified, given that the liquidators only revealed the full extent of their demands in mid -2024 due to lack of financial items from FTX and a lack of cooperation from 3AC’s founders, Zhu SU and Kyle Davies.

3AC, founded in 2012, had grown to one of the most influential financial companies in the cryptocurrency industry in 2022. Its collapse was among the first and largest dominoes that fell before the wider Crypto Market implated in 2022, which ultimately set the cancellation of events that revealed scams in Sam Bankman-fred’s crypto.

Bankman-Fred is currently pursuing an appeal of his criminal and 25-year-old prison sentence. After the collapse of 3AC, SU was detained in Singapore and was sentenced to four months in prison for not cooperating with 3AC’s liquidators. Davies did not face any charges associated with the collapse of the Hedge Foundation.

3AC founders reunite in 2023 to launch a short-term crypto exchange called the Opnx designed to allow users to trade bankruptcy prices from failed cryptic businesses-closed in February.

With the court’s decision, 3ACS liquidators now have a markedly larger position in FTX. Bankruptcy proceedings that raise questions about how the extended requirement will affect distributions to other creditors. The order also emphasizes the lack of transparency of both FTX and 3AC – which further complicates the efforts to remove both companies’ assets and obligations.