Attorneys representing FTX are vigorously contesting a $1.5 billion claim made by the bankrupt hedge fund Three Arrows Capital (3AC), labeling the claim as unfounded and stemming from 3AC’s own trading errors.
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FTX aims to fully reject the $1.5 billion claim from 3AC, asserting it is both legally and factually incorrect.
The exchange contends that 3AC violated margin requirements and disregarded multiple warnings prior to an essential liquidation of $82 million.
FTX claims that 3AC is attempting to deflect responsibility for its trading failures while seeking to recover losses at the cost of other creditors.
In a recent court submission, FTX lawyers argued that 3AC’s endeavor to recover funds from the exchange’s bankruptcy estate should be entirely dismissed.
This objection follows a Delaware bankruptcy judge’s decision in November 2024, which allowed 3AC to escalate its claim from $120 million to $1.5 billion, citing new evidence concerning asset liquidations.
3AC Alleges FTX Liquidated $1.5B in Assets Before Its Downfall
3AC alleges that FTX liquidated approximately $1.5 billion in assets just weeks ahead of the hedge fund’s own collapse.
However, FTX’s legal team has rejected this assertion, describing it as based on “an unreasonable and unsupportable starting premise,” and accusing it of using “inaccurate figures” while being “blind” to the reality of the events.
The objection references a breach of margin requirements by 3AC in June 2022, following the fallout from the collapse of Terra.
According to the filing, after 3AC’s account dipped below the necessary $240 million balance, the firm allegedly failed to respond for over six hours. Instead of rectifying the shortfall, it purportedly withdrew $18 million in ETH.
Subsequently, FTX moved to liquidate the account, successfully recovering $82 million. The attorneys argue that this action not only adhered to credit and margin agreements but also safeguarded the estate from further financial damage.
FTX lawyers assert 3AC’s $1.5 billion claim ‘defies logic’ and request dismissal
-Legal representatives for the FTX bankruptcy estate have filed an objection to a $1.5 billion request from Three Arrows Capital, urging the court to fully dismiss the claim.
-The lawyers state 3AC’s… https://t.co/YCMn4AwEs6
— Rukawa Kaede. (@show4653) June 23, 2025
FTX maintains that, without the liquidation, 3AC’s account would have faced an $18 million deficit by the time the exchange declared bankruptcy.
“The forced liquidation was not just allowable but necessary,” stated Steven Coverick of Alvarez & Marsal, who conducted a forensic analysis of the transactions, with his conclusions submitted alongside the objection. British Virgin Islands King’s Counsel Stephen Atherton also commented, deeming 3AC’s legal arguments under BVI law as faulty.
FTX’s representatives assert that 3AC is attempting to recoup losses from its own aggressive trading practices by imposing on the exchange’s creditor pool.
“Creditors of FTX should not and cannot be held responsible for 3AC’s unsuccessful trading strategy,” the filing emphasizes.
3AC is required to respond by July 11, with a non-evidentiary hearing set for August 12.
Sam Bankman-Fried’s Release Date Scheduled for 2044
Sam Bankman-Fried, the founder of FTX, is now projected to be released from federal custody on December 14, 2044, after serving nearly 21 years of his 25-year sentence for fraudulent activities linked to the FTX collapse.
He was additionally penalized with over $11 billion in fines. Federal records indicate that Bankman-Fried has been transferred from New York to a facility in Oklahoma after spending close to two years incarcerated.
This transfer follows reports that he was placed in solitary confinement earlier this month after granting an unauthorized interview to Tucker Carlson.
His incarceration commenced in August 2023, following Judge Lewis Kaplan’s revocation of his bail due to alleged witness tampering involving leaked diary entries from Caroline Ellison, the former CEO of Alameda, who was a crucial witness in the case.
The post detailing FTX Lawyers’ Rejection of 3AC’s $1.5B Claim — Asserting Collapse Was Self-Inflicted appears first on Finance Newso.
