FTX Pushes Back Against $1.5B Claim From Defunct Hedge Fund 3AC

FTX’s liquidators have filed a strong objection to a multi-billion-dollar claim by failed hedge fund Three Arrows Capital (3AC), arguing the request is based on exaggerated and misleading figures.

The dispute, now playing out in Delaware bankruptcy court, centers on digital asset values 3AC says it held on FTX before the exchange’s collapse.

According to FTX’s court filing, the true value of 3AC’s account was just $284 million in mid-2022, burdened by over $700 million in margin debt. The estate claims 3AC ignored this liability, painting a distorted picture of its holdings.

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The filing also reveals that nearly all assets in the account vanished within days—$222 million lost to the market crash and $60 million withdrawn by 3AC. Only one position worth $82 million was force-liquidated, which FTX says was in line with platform rules to avoid a negative balance.

In its statement, FTX argues that creditors should not be responsible for covering 3AC’s overleveraged bets. If the court agrees, 3AC could lose the bulk of its claim or be downgraded to a general creditor status, greatly reducing its potential payout.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.