The group 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 line with FTX’s authorized submitting, is just not 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 an alternative of posting collateral, and finally compelled FTX to liquidate their positions. Now, 3AC’s liquidators need the courtroom to imagine that FTX owes them greater than a billion {dollars}.
What Actually Occurred With the 3AC Account
Back 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 common lack of confidence. 3AC had borrowed funds and positioned giant 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
Based on courtroom filings, 3AC went silent for over six hours and as an alternative 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 detrimental stability.
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Why FTX Believes the Claim Is Inflated
FTX’s authorized group is asking the Delaware chapter courtroom to reject the total declare. They argue that 3AC is making an attempt to rewrite historical past by blaming FTX for its personal poor choices. Of their view, the hedge fund’s large 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 advisor from Alvarez & Marsal, who reconstructed the buying and selling knowledge and discovered that the liquidation was justified. A authorized professional in British Virgin Islands legislation, the place 3AC was included, additionally weighed in. They mentioned the authorized idea behind 3AC’s declare didn’t maintain up.
The numbers additionally don’t fairly add up. FTX says the crypto stability in 3AC’s account was round $1.02 billion, however after subtracting liabilities, withdrawals, and the worth misplaced through the market crash, the ultimate stability was a lot smaller. FTX argues that 3AC’s declare of being owed $1.53 billion merely doesn’t replicate what occurred.
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What Comes Subsequent within the Case
3AC’s group 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”>.
FTX’s chapter course of nonetheless ties up billions, and lots of collectors await readability. This case might affect how rapidly and pretty remaining funds are distributed. It additionally raises questions on how claims between failed crypto corporations ought to be dealt with when each side made critical errors. 3AC’s $1.5B declare would possibly reshape how collapsed crypto corporations 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.
- FTX says 3AC failed to fulfill margin calls, withdrew $18 million in ETH, and compelled FTX to liquidate its account to stop deeper losses.
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A advisor reconstructed buying and selling knowledge exhibiting the l
iquidation was justified, and a BVI authorized professional 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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