The staff winding down FTX’s chapter is firing again at a large declare filed by collapsed hedge fund Three Arrows Capital, higher referred to as 3AC. The $1.53 billion declare, in accordance with FTX’s authorized submitting, isn’t solely exaggerated but in addition based mostly on flawed assumptions and poor danger administration by 3AC itself. In courtroom paperwork, FTX argues that 3AC’s $1.5B declare ignores key info about margin breaches and fund withdrawals.
On the coronary heart of the dispute is a collection of leveraged trades positioned by 3AC on the FTX platform earlier than each corporations went beneath. FTX says 3AC ignored margin calls, withdrew funds as a substitute of posting collateral, and finally compelled FTX to liquidate their positions. Now, 3AC’s liquidators need the courtroom to consider that FTX owes them greater than a billion {dollars}.
What Actually Occurred With the 3AC Account
Again in 2022, 3AC held a sizeable margin buying and selling account on FTX. This was across the time the broader crypto market was reeling from the collapse of Terra and a normal lack of confidence. 3AC had borrowed funds and positioned massive bets on the platform. When the market turned and the worth of these positions dropped, FTX says it despatched out alerts warning that the account had fallen beneath margin necessities.
⚖️ Attorneys for the #FTX chapter property have objected to a $1.53B declare from collapsed buying and selling agency Three Arrows Capital, arguing that #3AC’s personal actions led to its losses.
FTX claims that 3AC’s intensive spot and margin buying and selling—partially funded by a $120M credit score line from… pic.twitter.com/DjDZy82stw
— Mpost Media Group (@mpost_io) June 23, 2025
In line with courtroom filings, 3AC went silent for over six hours and as a substitute pulled $18 million in Ethereum from the account. FTX then liquidated the positions, claiming the transfer was not solely allowed beneath the phrases of the settlement however essential to keep away from deeper losses. After the liquidation, the account nonetheless held $82 million, and FTX argues that letting the place experience longer would have led to a unfavourable steadiness.
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Why FTX Believes the Declare Is Inflated
FTX’s authorized staff is asking the Delaware chapter courtroom to reject the total declare. They argue that 3AC is attempting to rewrite historical past by blaming FTX for its personal poor choices. Of their view, the hedge fund’s huge publicity, late response, and premature withdrawal of funds created a gap within the account. FTX had no selection however to shut it.
To strengthen its case, FTX introduced in a guide from Alvarez & Marsal, who reconstructed the buying and selling information and discovered that the liquidation was justified. A authorized knowledgeable in British Virgin Islands regulation, the place 3AC was included, additionally weighed in. They stated the authorized idea behind 3AC’s declare didn’t maintain up.
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The numbers additionally don’t fairly add up. FTX says the crypto steadiness in 3AC’s account was round $1.02 billion, however after subtracting liabilities, withdrawals, and the worth misplaced in the course of the market crash, the ultimate steadiness was a lot smaller. FTX argues that the declare 3AC is owed $1.53 billion merely doesn’t replicate what occurred.
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What Comes Subsequent within the Case
3AC’s staff has till July 11 to formally reply to the objection. =””>reserver-spaces=”true”>>A courtroom listening to has been scheduled for August 12 in Delaware, the place a choose will resolve how a lot, if any, of 3AC’s $1.5B declare can transfer aheada-preserver-spaces=”true”>.
Billions are nonetheless tied up in FTX’s chapter course of, and lots of collectors are ready for readability. This case may affect how rapidly and pretty remaining funds are distributed. It additionally raises questions on how claims between failed crypto companies must be dealt with when each side made critical errors. 3AC’s $1.5B declare would possibly reshape how collapsed crypto companies deal with creditor disputes.
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Key Takeaways
FTX is difficult a $1.53 billion declare from Three Arrows Capital, calling it inflated and based mostly on flawed assumptions.
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FTX says 3AC failed to satisfy margin calls, withdrew $18 million in ETH, and compelled FTX to liquidate its account to stop deeper losses.
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A guide reconstructed buying and selling information exhibiting the l
iquidation was justified, and a BVI authorized knowledgeable disputed the idea of 3AC’s declare.
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FTX argues the remaini
ng account worth didn’t assist a declare of over $1 billion after accounting for liabilities and withdrawn property.
The courtroom will hear the dispute on August 12, and 3AC should reply to FTX’s objection by July 11.
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