Three Arrows Capital Subpoena Request Targets Sam Bankman-Fried and Former FTX Executives

Highlights:

• Three Arrows Capital subpoena targets Sam Bankman-Fried and former FTX leaders in a $1.5B liquidation case.
• Zhu Su accuses Sam Bankman-Fried of forcibly liquidating 3AC assets during the 2022 crypto market collapse.
• FTX will begin its next round of creditor payouts on September 30 with partners BitGo, Kraken, and Payoneer.

Three Arrows Capital has subpoenaed three former FTX executives, including Sam Bankman-Fried, to testify in court over a $1.5 billion dispute. The filing, submitted in the US Bankruptcy Court for the District of Delaware on September 9, seeks testimony and documents related to alleged asset liquidations.

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🚨 Breaking: 3AC is dragging ex-FTX execs back into court.

A new filing demands Sam Bankman-Fried, Caroline Ellison & Ryan Salame testify about the alleged illegal liquidation of 3AC’s $1.5B position in 2022.

SBF could be transported from prison to court on Oct 14. 👀#Crypto pic.twitter.com/GtShDtmKFl

— PrincipeCripto (@PrincipeCripto) September 11, 2025

The document, titled “Notice of Intent to Serve Subpoena on Sam Bankman-Fried,” schedules his deposition for October 14. Bankman-Fried is currently serving a 25-year sentence at the Federal Correctional Institution in Terminal Island, California. If the court approves, prison authorities will transport him to provide sworn testimony regarding dealings with Three Arrows Capital.

The subpoena also names Caroline Ellison, former CEO of Alameda Research, and Ryan Salame, former co-CEO of FTX Digital Markets. Courts convicted both in connection with the FTX collapse, which remains one of the largest bankruptcies in crypto history. FTX creditor Sunil Kavuri shared the request publicly and confirmed the move by Three Arrows Capital’s joint liquidators, Russell Crumpler and Christopher Farmer. The goal is to determine whether FTX’s executives engaged in misconduct that contributed to Three Arrows Capital’s insolvency.

Zhu Su Claims Illegal Liquidation of $1.5 Billion in Assets

The subpoenas come after allegations by Three Arrows Capital co-founder Zhu Su, who alleged that FTX had illegally sold off $1.5 billion of their positions in 2022. He accuses Sam Bankman-Fried of forcing the liquidation to occur prematurely without clear reasons, which aggravated the already unsustainable financial position of the hedge fund.

Zhu also alleges that Ryan Salame was using insider information to front-run trades against client positions. The allegations state that Salame embezzled more than $1 billion out of FTX before its downfall. Ellison was in charge then at Alameda Research, which was closely associated with trading strategies attributed to these alleged operations.

The connection between FTX and Three Arrows Capital has been contested in court for years. In June, the FTX bankruptcy estate rejected 3AC’s claim that its account balance reached $1.6 billion during the market crash in 2022. Estate representatives argued the true balance stood closer to $284 million, once they included margin debt of $733 million.

FTX seeks to block 3AC's $1.5B claim, alleges self-inflicted losses FTX's bankruptcy estate is pushing back against a $1.5 billion claim from Three Arrows Capital, arguing the failed hedge fund is trying to recover losses from its… @CosmicMetaX #FTXhttps://t.co/rv4hXZFic3

— Cosmic Meta Digital (@CosmicMetaX) June 23, 2025

In a 94-page objection, lawyers dismissed 3AC’s claim as “illogical and baseless.” They argued that Three Arrows Capital failed to recognize its own liabilities and sought to shift losses to other creditors.

FTX Creditors Await New Round of Payouts

Amid the Three Arrows Capital subpoena, FTX has confirmed that its next round of creditor payouts will begin on September 30. The record date for eligible claims was August 15. FTX will process distributions through partners including BitGo, Kraken, and Payoneer.

However, opposition has emerged from a Chinese creditor representing 300 users. The creditor challenged FTX’s proposal to exclude payouts in 49 jurisdictions, including China, calling the restriction unfair. So far, FTX has returned about $6.2 billion to creditors under its court-approved plan. Sam Bankman-Fried was convicted of defrauding customers and investors of more than $11 billion. He is projected for release in December 2044, after serving nearly 21 years of his sentence.

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