FTX Slams 3AC’s $1.53B Claim, Says Losses Were Self-Inflicted
TLDR
FTX formally objected to a $1.53 billion claim filed by Three Arrows Capital’s liquidators.
The exchange argued that 3AC’s losses were caused by its high-risk trading strategies during a volatile crypto market.
FTX stated that the hedge fund’s account balances were lower than claimed and based on incorrect data.
The firm asserted that it only liquidated $82 million in crypto, which was permitted under contractual agreements.
FTX maintained that the liquidation actually preserved 3AC’s account value rather than causing additional losses.
FTX has officially objected to a $1.53 billion claim filed by the liquidators of collapsed hedge fund Three Arrows Capital (3AC). The objection states that 3AC’s losses were due to its own high-risk strategies during extreme crypto market volatility. FTX firmly denied responsibility, arguing that 3AC’s failed trades should not be reimbursed through the exchange’s bankruptcy estate.
FTX’s legal team submitted the objection in the U.S. Bankruptcy Court for the District of Delaware. The objection challenges the legitimacy of the claim and disputes the methodology used to calculate the alleged damages. The exchange maintains that 3AC’s investments were speculative and that its own customers should not bear the financial burden.
The firm believes the $1.53 billion claim is inflated and inconsistent with 3AC’s actual balances at the time of collapse. FTX emphasized that 3AC had a negative U.S. dollar balance on June 12, 2022, along with a reduced crypto balance. The filing claims the hedge fund misrepresented data and relied on incorrect assumptions to support its demand.
FTX Chapter 11 – 3AC Key Update 🏹🧵
1️⃣ Headline
Three Arrows Capital (3AC) says FTX “owes” it $1.53B. The FTX Recovery Trust just filed a 94 page takedown brief telling the judge that number is make‑believe.
— MBottjer (@Mbottjer) June 22, 2025
FTX Disputes Account Balances and Valuation Claims
FTX contested the account data used by 3AC liquidators to justify the massive claim, stating the figures are misleading and inaccurate. According to FTX, 3AC’s crypto holdings on June 12, 2022, totaled $1.02 billion, not $1.59 billion as claimed. Additionally, the hedge fund’s U.S. dollar balance was negative $733 million instead of the alleged $1.3 billion deficit.
The objection explains that 3AC’s calculations rest on a flawed premise that all post-June 12 losses are recoverable from FTX. Lawyers said the claim incorrectly attributes losses to FTX rather than market fluctuations and 3AC’s own trading actions. They insist the claim lacks legal and factual merit and should be rejected in its entirety.
FTX added that 3AC withdrew $60 million from its account, reducing its already low balance further before any liquidation. The company stated that it had to liquidate $82 million in crypto assets due to 3AC’s failure to meet margin requirements. This liquidation was permitted under the agreement and actually protected the account’s value.
2️⃣ Reality check: $284M, not $1.53B
On 12 Jun 2022 3AC’s whole FTX account, after adding all pluses and minuses, was worth ~$284M. The “$1.59B” line people quote ignores an even bigger negative USD balance from margin borrowing.
— MBottjer (@Mbottjer) June 22, 2025
Legal Dispute Intensifies Over Liquidation and Fiduciary Duty
FTX asserted that the liquidation did not harm 3AC but instead helped maintain account stability by converting crypto into fiat. The firm claimed the $82 million value was transferred to the fiat account, preserving assets during a volatile period. Therefore, FTX argued the action was both necessary and beneficial to 3AC under contract terms.
3AC’s liquidators claimed the transactions were avoidable and caused severe financial damage, contributing to the hedge fund’s collapse. The Delaware court allowed 3AC to proceed with its motion in March, increasing tensions in the ongoing case. However, FTX now argues that the entire claim is baseless and aims to shift responsibility unfairly.
The firm maintains that only losses stemming from 3AC’s risky investment decisions caused its failure, not any wrongdoing by FTX. The court will hold a non-evidentiary hearing on August 12, while 3AC has until July 11 to respond.
The post FTX Slams 3AC’s $1.53B Claim, Says Losses Were Self-Inflicted appeared first on CoinCentral.
Filed under: News - @ June 23, 2025 2:26 pm