6 hours ago
The $1.53 cardinal 3AC’s liquidators accidental the defunct hedge money is owed is simply a steep summation from their archetypal assertion for $120 million.
Jun 23, 2025, 5:45 p.m.
Bankrupt crypto speech FTX has said it should not person to wage a monolithic $1.53 cardinal betterment assertion by Three Arrows Capital, arguing successful a caller tribunal filing that the crypto hedge fund’s “own risky [trading] strategy caused its collapse, and its ain relationship enactment — not immoderate enactment by [FTX] — resulted successful a important diminution successful the “value” associated with the 3AC Accounts successful June 2022.”
“3AC stake large that cryptocurrency prices would summation utilizing currency it did not person and, erstwhile prices alternatively plummeted, 3AC proceeded to liquidate the risky bets it had placed and retreat assets from [FTX],” FTX’s lawyers wrote successful the filing.
The Delaware tribunal overseeing FTX’s bankruptcy gave 3AC’s liquidators support to grow their claim earlier this year, bumping it up importantly from their archetypal assertion of $120 million. This came aft 3AC’s lawyers allegedly discovered caller grounds suggesting that FTX had liquidated $1.53 cardinal of 3AC’s assets 2 weeks earlier the hedge money started its ain liquidation proceedings successful June 2022. FTX’s lawyers accidental the liquidation of 3AC’s assets connected its level was carried retired to fulfill a indebtedness to FTX — but 3AC’s lawyers pushed back, arguing that the indebtedness to FTX wasn’t sufficiently documented oregon different substantiated. The bankruptcy tribunal sided with 3AC, uncovering insufficient grounds to enactment FTX’s assertion of a loan.
In the astir caller filing, lawyers for FTX’s property said that connected June 12, 2022 the existent worth of assets successful 3AC’s accounts was lone $284 cardinal — $1.017 cardinal successful integer assets and antagonistic $733 cardinal successful US dollars. They besides added that the “first and only” liquidation of 3AC’s assets ordered by FTX was connected June 14, 2022, and swapped $82 cardinal successful crypto for currency — a determination they argued “actually benefitted 3AC (not FTX).”
“The Joint Liquidators grossly inflate the existent $284 cardinal worth of assets associated with the 3AC Accounts connected June 12, 2022 by much than $1.2 billion, and they disregard that the full nonaccomplishment successful relationship worth resulted from marketplace terms declines and 3AC’s ain withdrawals, not immoderate enactment taken by FTX,” the bankrupt exchange’s lawyers wrote.
“The Joint Liquidators inquire this Court to unit different Exchange customers and creditors to ft the measure for 3AC’s failed strategy by asserting illogical and baseless claims for $1.53 billion…
[T]his is simply a mendacious premise that lacks immoderate ineligible oregon factual merit, and, successful fact, 3AC is owed nothing,” the lawyers added.
FTX, which was astatine 1 clip 1 of the largest crypto exchanges successful the world, filed for bankruptcy extortion soon aft its illness successful November 2022. The exchange's betterment spot started distributing $5 cardinal to FTX creditors successful May.
3AC collapsed successful June 2022, 1 period aft the illness of the Terra/LUNA ecosystem, starting a domino-like illness of large crypto companies including Voyager, Celsius, BlockFi and Genesis.
3AC has until July 11 to record an objection earlier the proceeding acceptable for August 12.
Cheyenne Ligon
On the quality squad astatine CoinDesk, Cheyenne focuses connected crypto regularisation and crime. Cheyenne is primitively from Houston, Texas. She studied governmental subject astatine Tulane University successful Louisiana. In December 2021, she graduated from CUNY's Craig Newmark Graduate School of Journalism, wherever she focused connected concern and economics reporting. She has nary important crypto holdings.
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