The United States’s bankruptcy court for the Delware district granted a request allowing the joint liquidators of the capital of the three arrows (3AC) to modify their proof of initial complaint in the procedure of bankruptcy of the FTX. This increases their claims by $ 120 million to $ 1.53 billion.
The modified deposit has expanded the allegations of 3ac against the FTX to include a breach of contract, a violation of the fiduciary obligation, an unjust enrichment and complaints of owners’ restitution.
3ac liquidators guarantee a large victory in the case of FTX
The decision stems from a request filed by 3ac liquidators, Russell Crumper and Christopher Farmer. For the context, the liquidators initially filed their proof of complaint in June 2023.
He sought to recover funds related to preference, conversion and other avoidance actions linked to a loan of $ 120 million which would have been due by 3AC to FTX. However, after a more in -depth investigation, the liquidators determined that 3ac relations with the FTX were much more extensive.
“The information obtained by the liquidators of the year since they filed their original POC led them to the new conclusion that only two weeks before the start of the 3AC liquidation, the $ 1.53 billion in assets that 3ac had on the FTX platform were liquidated to satisfy $ 1.3 billion in FTX,” said the document.
In addition, according to court documents, liquidators have faced substantial obstacles during their investigation. This included a lack of appropriate 3ac recordings. In addition, the cooperation was minimal of the founders of the company, Kyle Davies and Su Zhu.
Delays in receipt of critical documents and data have aggravated these challenges. A large part of the key information was made available until the end of 2023 and at the beginning of 2024. This intervened after FTX itself filed for a bankruptcy in November 2022. The scholarship collapsed in the midst of allegations of fraud and mismanagement under the former CEO Sam Bankman.
This delay prevented liquidators from fully understanding the extent of 3AC transactions with FTX until the deadline for original claims has passed.
“The evidence clearly indicates that the description of the facts contained in the original POC was based on the limited information that the liquidators had at their disposal at that time,” wrote Judge John T. Dorsey.
Meanwhile, FTX opposed the movement. They argued that the amendment had been deposited too late and widened the scope of complaints, violating the bankruptcy process. The debtors said that the proof of initial complaint had not provided for sufficient notice of the nature or the amount of the newly proposed complaints.
However, the court rejected the objections of the FTX, the seat of 3ac liquidators and the approval of the extended complaint. In addition, the court concluded that a large part of the delay in filing the modified complaint was attributable to non-compliance with the FTX to quickly provide the necessary documents to liquidators.
“After having considered all the evidence presented, I note that the balance of actions is in favor of the authorization of the modified POC,” noted the Dorsey judge.
This last development occurs in parallel with the in progress of Bankman Fried to ensure the forgiveness of President Donald Trump. To strengthen his case, Freed Bankman sought to line up with right figures.
It recently appeared in the show of Tucker Carlson and would have consulted a lawyer linked to Trump. Despite the history of Trump’s pardons, skepticism remains due to the lack of SBF support in the cryptographic community.
Non-liability clause
In membership of the Trust project guidelines, Beincrypto has embarked on transparent impartial reports. This press article aims to provide precise and timely information. However, readers are invited to check the facts independently and consult a professional before making decisions according to this content. Please note that our terms and conditions, our privacy policy and our non-responsibility clauses have been updated.
