FTX Pushes to Dismiss Billion-Dollar Claim from 3AC

FTX’s legal team has moved to dismiss a $1.53 billion claim filed by Three Arrows Capital (3AC), calling it an exaggerated and baseless attempt to recover losses from risky trading.

Filed in Delaware bankruptcy court, the objection argues that 3AC’s collapse was the result of its own leveraged bets, not any wrongdoing by FTX.

According to FTX, 3AC inflated its claim by relying on outdated account snapshots from mid-2022, shortly before the crypto market crashed. At that time, FTX says, 3AC’s account had only $284 million in net value, factoring in a substantial margin debt of over $700 million.

The exchange also emphasized that it only liquidated one $82 million position after 3AC failed to respond to margin calls — a move it says was contractually justified and necessary to prevent deeper losses.

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FTX’s lawyers argue that 3AC is trying to offload the costs of its failed strategy onto other creditors, and that the theory of “lost assets” has no legal or factual basis. The hearing is set for August 12, with 3AC’s response due by July 11.

Meanwhile, 3AC is also pursuing a separate $1.3 billion claim against Terraform Labs, accusing it of misleading marketing that led to massive losses during the LUNA and UST collapse. The hedge fund’s recovery efforts highlight the broader fallout from the 2022 crypto downturn, but courts may ultimately reject its claims as overreaching.

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.