FTX Rejects $1.53 Billion Claim from Three Arrows Capital in Bankruptcy Dispute

Highlights:

• The bankrupt company says Three Arrows Capital’s losses came from risky trades and not any wrongdoing by the exchange.
• The estate claimed that 3AC was trying to push the blame for its failure onto FTX and its clients.
• The recent objection from FTX brings the matter back before the court for a full review.

FTX, founded by Sam Bankman-Fried and Gary Wang, has strongly rejected the $1.53 billion claim filed by the collapsed hedge fund Three Arrows Capital. The objection was submitted in the U.S. Bankruptcy Court for the District of Delaware. FTX’s legal team argued that the claim has no basis and that the hedge fund’s losses were caused by its own high-risk trading approach. According to them, 3AC placed large bets on a rising crypto market and collapsed when prices fell sharply in mid-2022.

📢 📢 @FTX_Official Rejects 3AC Liquidators’ $1.53B Bankruptcy Claim, Cites Risky Trading Strategy

FTX maintains that Three Arrows Capital used a $120 million credit line for risky bets, failed to keep a $240 million margin.

Three Arrows Capital Pte Ltd’ liquidators must file… pic.twitter.com/TGgjvhDa3V

— UnoCrypto (@unocrypto_com) June 23, 2025

FTX lawyers said the claim relies on false assumptions and inflated figures. They stated that 3AC’s actual crypto balance stood at $1.02 billion on June 12, 2022. In contrast, the margin liabilities reached $733 million. This left a net balance of only $284 million. FTX explained that $222 million of that amount was lost due to price declines, while 3AC withdrew $60 million before the liquidation occurred.

In their objection, FTX confirmed that the only liquidation action taken was for $82 million worth of crypto assets. The attorneys claimed that this was in accordance with the credit and margin agreements. They emphasized that the move was necessary to maintain required balances and to avoid greater losses.

The estate also claimed that 3AC was trying to push the blame for its failure onto FTX and its clients. According to the filing, the hedge fund wants other creditors to bear the cost of its failed trading positions. FTX’s lawyers said the entire claim should be disallowed and that 3AC is not owed any recovery from the estate.

3AC Seeks Compensation from FTX Estate

3AC first sought compensation of $120 million against FTX. The liquidators increased the demand to $1.53 billion with the approval of the court in November 2024. They accused FTX of breaching its contractual obligations and failing to disclose important account activity during the collapse.

According to the liquidators at the hedge fund, as of June 12, 2022, the crypto holding of the hedge fund was worth $1.59 billion. They argued that FTX sold off the assets to cover obligations without due notice or legal basis. In their view, the transactions were unnecessary and added directly to the failure of the hedge fund.

Although Chief Judge John Dorsey approved the increase in the claim amount, he did not decide on the final outcome. The recent objection from FTX brings the matter back before the court for a full review. Meanwhile, the estate insists that 3AC is trying to reclaim losses that came from its own mismanagement.

Court to Review Case as 3AC Prepares Reply

The hedge fund has until July 11 to file its response to the objection from the bankrupt company. A non-evidentiary hearing is scheduled for August 12 and will be overseen by Chief Judge Karen Owens. The court will examine the arguments from both sides before deciding how to proceed. In a separate legal matter, the hedge fund is also seeking a claim against payment platform Terraform Labs. The outcome of both cases will depend on future court rulings.