The team winding down FTX’s bankruptcy is firing back at a massive claim filed by collapsed hedge fund Three Arrows Capital, better known as 3AC. The $1.53 billion claim, according to FTX’s legal filing, is not only exaggerated but also based on flawed assumptions and poor risk management by 3AC itself. In court documents, FTX argues that 3AC’s $1.5B claim ignores key facts about margin breaches and fund withdrawals.
At the heart of the dispute is a series of leveraged trades placed by 3AC on the FTX platform before both companies went under. FTX says 3AC ignored margin calls, withdrew funds instead of posting collateral, and ultimately forced FTX to liquidate their positions. Now, 3AC’s liquidators want the court to believe that FTX owes them more than a billion dollars.
What Really Happened With the 3AC Account
Back in 2022, 3AC held a sizeable margin trading account on FTX. This was around the time the broader crypto market was reeling from the collapse of Terra and a general loss of confidence. 3AC had borrowed funds and placed large bets on the platform. When the market turned and the value of those positions dropped, FTX says it sent out alerts warning that the account had fallen below margin requirements.
Lawyers for the #FTX bankruptcy estate have objected to a $1.53B claim from collapsed trading firm Three Arrows Capital, arguing that #3AC’s own actions led to its losses.
FTX claims that 3AC’s extensive spot and margin trading—partially funded by a $120M credit line from… pic.twitter.com/DjDZy82stw
— Mpost Media Group (@mpost_io) June 23, 2025
Lawyers for the According to court filings, 3AC went silent for over six hours and instead pulled $18 million in Ethereum from the account. FTX then liquidated the positions, claiming the move was not only allowed under the terms of the agreement but necessary to avoid deeper losses. After the liquidation, the account still held $82 million, and FTX argues that letting the position ride longer would have led to a negative balance.
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Why FTX Believes the Claim Is Inflated
FTX’s legal team is asking the Delaware bankruptcy court to reject the full claim. They argue that 3AC is trying to rewrite history by blaming FTX for its own poor decisions. In their view, the hedge fund’s massive exposure, late response, and untimely withdrawal of funds created a hole in the account. FTX had no choice but to close it.
To strengthen its case, FTX brought in a consultant from Alvarez & Marsal, who reconstructed the trading data and found that the liquidation was justified. A legal expert in British Virgin Islands law, where 3AC was incorporated, also weighed in. They said the legal theory behind 3AC’s claim did not hold up.
The numbers also don’t quite add up. FTX says the crypto balance in 3AC’s account was around $1.02 billion, but after subtracting liabilities, withdrawals, and the value lost during the market crash, the final balance was much smaller. FTX argues that 3AC’s claim of being owed $1.53 billion simply does not reflect what happened.
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What Comes Next in the Case
3AC’s team has until July 11 to formally respond to the objection. =””>reserver-spaces=”true”>>A court hearing has been scheduled for August 12 in Delaware, where a judge will decide how much, if any, of 3AC’s $1.5B claim can move forwarda-preserver-spaces=”true”>.
FTX’s bankruptcy process still ties up billions, and many creditors await clarity. This case could influence how quickly and fairly remaining funds are distributed. It also raises questions about how claims between failed crypto firms should be handled when both sides made serious mistakes. 3AC’s $1.5B claim might reshape how collapsed crypto firms handle creditor disputes.
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Key Takeaways
- FTX is challenging a $1.53 billion claim from Three Arrows Capital, calling it inflated and based on flawed assumptions.
- FTX says 3AC failed to meet margin calls, withdrew $18 million in ETH, and forced FTX to liquidate its account to prevent deeper losses.
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A consultant reconstructed trading data showing the l
iquidation was justified, and a BVI legal expert disputed the basis of 3AC’s claim.
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FTX argues the remaini
ng account value did not support a claim of over $1 billion after accounting for liabilities and withdrawn assets.
- The court will hear the dispute on August 12, and 3AC must respond to FTX’s objection by July 11.
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