The court ruled that FTX expanded its compensation to Three Arrows Capital to over $1.5 billion. Will Zu Shu take a large amount of SOL and AI company equity as the big winner?

FTX bankruptcy liquidation continues to develop, 3AC expands its claims and gets court approval, but how the final assets will be distributed and whether retail investors will be fairly compensated are still full of variables. (Background: FTX first repayment has been credited! Claims over $50,000 by creditors, next distribution expected to start on 5/30) A recent ruling by the U.S. bankruptcy court allows Three Arrows Capital (3AC), one of the former world's largest Crypto Assets Hedging funds that has collapsed, to expand its claims on FTX bankruptcy assets to $1.53 billion, rejecting FTX debtors' objections. FTX liquidation team originally tried to block this expanded claim, arguing it was untimely and lacked legal basis, but the court ultimately determined that 3AC had the right to make additional claims and pointed out FTX's delays in providing financial records, affecting 3AC's investigation. According to the ruling by Judge John T. Dorsey of the Delaware bankruptcy court, FTX debtors failed to prove that the expanded claims by 3AC caused significant injustice to the case. Instead, it was FTX's lack of transparency in financial information that prevented 3AC from submitting complete claims in a timely manner. The court therefore concluded that 3AC still has the right to assert a higher amount of compensation. This ruling has far-reaching implications for the FTX bankruptcy case, as 3AC is not an ordinary exchange user but an institutional investor that has engaged in investment transactions with FTX. The most direct impact of this ruling is on the asset distribution order in the FTX bankruptcy liquidation, which also involves whether the treatment of ordinary exchange users and institutional investors is fair. According to the current liquidation process, the compensation for FTX exchange users is calculated based on prices at the end of 2022 when the bankruptcy occurred (for example, when FTX applied for bankruptcy protection, the price of BTC was only about $16,000), meaning that even if the market later recovers and Crypto Asset prices rise, these users will still only receive relatively low-value assets. However, for institutional investors like 3AC, the situation is completely different... Besides the assets originally held within FTX, institutional investors (such as 3AC) may also receive other assets from FTX's early investments, such as Solana (SOL) and equity in AI startups, which have significantly appreciated in the market after FTX's bankruptcy. Solana's price surged from $10 at the time of FTX's bankruptcy to $200 at one point, and after the encryption market rebounded, FTX's early investments in AI, startups, and other assets also saw significant appreciation. Whether these profits will be used to compensate exchange users remains unclear. In other words, the compensation calculation for ordinary users is not equivalent to that of institutional investors. The potential gains after FTX's bankruptcy may be more inclined towards institutional investors rather than those users who had their funds frozen within FTX exchange. Can Three Arrows Capital still benefit from FTX liquidation after its bankruptcy? Is Zhu Su possibly the biggest winner? Another notable issue is that Three Arrows Capital (3AC) has already declared bankruptcy, yet it may still receive a large amount of assets in the FTX bankruptcy liquidation. Does this mean that Zhu Su, co-founder of 3AC, still has a chance for a comeback? According to court documents, 3AC announced bankruptcy as early as in 2022 during the market crash, and some of its co-founder Zhu Su's assets have been seized. However, as 3AC is still one of FTX's creditors, if this expanded claim is successful, 3AC may receive a portion of FTX's liquidation assets and use this fund to repay its own creditors in the bankruptcy process. Market experts analyze that if 3AC ultimately succeeds in obtaining this compensation fund from FTX, Zhu Su may still be the 'biggest winner' in this FTX bankruptcy case. Even if 3AC goes bankrupt, this fund may indirectly help Zhu Su and his related assets to regain stability and may even enable his return to the market in the future. However, the specific allocation of liquidation assets is not yet fully clear, and whether this fund will be used to prioritize repaying 3AC's creditors or may flow into Zhu Su's hands still awaits further clarification through legal procedures.