The United States Bankruptcy Court for the District of Delaware granted a motion allowing the joint liquidators of Three Arrows Capital (3AC) to amend their original proof of claim in the FTX bankruptcy proceedings. This increases their claims from $120 million to $1.53 billion. 

The amended filing broadened 3AC’s allegations against FTX to include breach of contract, breach of fiduciary duty, unjust enrichment, and proprietary restitutionary claims.

3AC’s Liquidators Secure Major Victory in FTX Case

The ruling stems from a motion filed by 3AC’s liquidators, Russell Crumpler and Christopher Farmer. For context, the liquidators initially filed their proof of claim in June 2023.

It sought to recover funds related to preference, conversion, and other avoidance actions tied to a $120 million loan allegedly owed by 3AC to FTX. Nonetheless, after further investigation, the liquidators determined that 3AC’s dealings with FTX were far more extensive.

“The information obtained by the Liquidators in the year since they filed their Original POC led them to the new conclusion that just two weeks before the commencement of the 3AC Liquidation, the $1.53 billion of assets that 3AC had on the FTX platform were liquidated to satisfy $1.3 billion in liabilities to FTX,” the document read.

Furthermore, according to court documents, the liquidators faced substantial obstacles during their investigation. This included a lack of proper records from 3AC. In addition, the cooperation was minimal from the company’s founders, Kyle Davies and Su Zhu. 

Delays in receiving critical documents and data compounded these challenges. Much of the key information was only made available in late 2023 and early 2024. This came after FTX itself had filed for bankruptcy in November 2022. The exchange collapsed amid allegations of fraud and mismanagement under former CEO Sam Bankman-Fried.

This delay prevented the liquidators from fully understanding the scope of 3AC’s transactions with FTX until after the original claims deadline had passed.

“The evidence makes clear that the description of the facts contained in the Original POC was based on the limited information that the Liquidators had available to them at that time,” Judge John T. Dorsey wrote.

Meanwhile, FTX objected to the motion. They argued that the amendment was filed too late and expanded the scope of the claims, violating the bankruptcy process. The debtors claimed that the original proof of claim did not provide sufficient notice of the nature or the amount of the newly proposed claims.

However, the court dismissed FTX’s objections, siding with 3AC’s liquidators and approving the expanded claim. Additionally, the court found that much of the delay in filing the amended claim was attributable to FTX’s failure to provide the necessary documents to the liquidators promptly.

“Having considered all the evidence presented, I find that the balance of the equities is in favor of allowing the Amended POC,” Judge Dorsey noted.

This latest development occurs alongside Bankman-Fried’s ongoing efforts to secure a pardon from President Donald Trump. To strengthen his case, Bankman-Fried has sought to align himself with right-wing figures.

He recently appeared on Tucker Carlson’s show and has reportedly consulted with a lawyer linked to Trump. Despite Trump’s history of pardons, skepticism remains due to SBF’s lack of support in the crypto community.

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Key takeaways

• Bitcoin could surge towards the $85k level after sweeping the $78k liquidity zone.
• Bitcoin Pepe’s presale has surpassed $4.5 million, with stage seven almost over.

BTC eyes the $85k region

The cryptocurrency market has been bearish over the past few days, with Bitcoin struggling around the $80k region. The world’s leading cryptocurrency by market cap, dropped to the $79k zone on Thursday, effectively grabbing liquidity and could surge to the $85k level in the coming hours or days.

At press time, the price of Bitcoin stands at $81,909 and could rally higher if the bulls take control of the market. 

What is Bitcoin Pepe?

The bearish market condition hasn’t affected Bitcoin Pepe as its presale is now approaching a new milestone. This exciting project began its presale a month ago and has raised over $4.5 million from investors. 

Bitcoin Pepe wants to revolutionise the Bitcoin ecosystem by leveraging the liquidity and security of the Bitcoin blockchain. It will use Bitcoin’s position in the market to introduce memecoins to its ecosystem. 

The team is currently building a layer-2 network on the Bitcoin blockchain. This L2 will specialise in memecoin trading and other DeFi activities. It will enable Bitcoin Pepe to become home to memecoin activities within the Bitcoin ecosystem. This will help it unlock decentralized finance (DeFi) and meme trading on top of BTC.

Bitcoin Pepe is also the first meme initial coin offering (ICO) on the Bitcoin blockchain, making it the perfect fusion between BTC’s security and the unstoppable force of memecoins. 

Bitcoin Pepe presale surpasses $4.5m

The Bitcoin Pepe presale is selling out fast, with investors putting in $4,686,963 into the project over the past four weeks. Currently in its seventh stage, the presale will enter the next stage after raising $5.67 million.

$BPEP, Bitcoin Pepe’s native token, is available to investors via the Bitcoin Pepe website. It can be purchased using various cryptocurrencies, including ETH, USDT, USDC, BNB, and SOL. In this sixth presale stage, $BPEP is worth $0.0281 and will increase to $0.0295 in the eighth stage. 

How will Bitcoin Pepe impact the Bitcoin blockchain?

Bitcoin Pepe is launching an L2 that could revolutionise how users interact with the Bitcoin blockchain. This L2 will introduce DeFi and memecoin trading on Bitcoin, which could enhance the network’s utility, enabling it to compete with smart contract blockchains like Ethereum and Solana in terms of utility. 

Furthermore, the network will enable developers to launch memecoins on the Bitcoin blockchain with ease. Memecoins will empower the Bitcoin blockchain to become home to a crazy high-octane meme experience. 

The Bitcoin Pepe project is working to unlock Bitcoin’s $2 trillion dormant market cap, making it available for memecoin trading. The network will provide the necessary infrastructure for all memes to migrate to BTC, ensuring security and liquidity for investors and users. 

Should you buy the $BPEP token today?

The $BPEP token will exclusively power activities within the Bitcoin Pepe ecosystem. With the right level of adoption, $BPEP could be a top performer within the broader cryptocurrency market. 

The presale will enter the eighth stage in the coming hours or days, with the $BPEP token set to increase to $0.0295. Thanks to the promising utility of its L2 network, this presale could be the perfect opportunity for investors to get in early and buy the tokens at a discount.