Explosive Subpoenas Target SBF, Ellison, Salame in 3AC’s $1.5B Illegal Liquidation Scandal
Subpoenas fly as Three Arrows Capital escalates its legal battle against FTX executives—accusing them of orchestrating a massive $1.5 billion illegal liquidation.
The Fallout
Sam Bankman-Fried, Caroline Ellison, and Ryan Salame now face intense scrutiny. Court documents allege they manipulated markets, bypassed regulations, and triggered catastrophic liquidations—crushing investors and shaking crypto’s fragile trust.
Behind the Numbers
That $1.5 billion figure isn’t just a headline—it’s a bloodbath. Whispers suggest insider trading, reckless leverage, and a classic case of 'too big to fail' mentality meeting very real consequences.
Finance’s Ironic Jab
Nothing says 'decentralized ethos' like a few billionaires playing fast and loose with other people’s money—until the subpoenas arrive.
Zhu Su Accuses SBF of Illegally Liquidating $1.5B in 3AC Assets
The MOVE follows accusations by 3AC co-founder Zhu Su, who claims Bankman-Fried liquidated $1.5 billion of their positions without proper justification.
Zhu also alleges that Ryne Salame exploited insider information to front-run trades against client positions, ultimately cashing out over $1 billion before the FTX collapse.
Ellison, who ran Alameda Research during the time of the alleged actions, is also expected to face questioning over the interconnected trading and liquidation strategies that may have played a role in pushing 3AC into insolvency.
The subpoenas come as part of broader recovery efforts tied to the bankruptcies of both FTX and 3AC, two of the most high-profile collapses in crypto history.
3AC have filed a notice to subponea SBF, Ryne Salame, Caroline Ellison
Sam's disposition will occur on 14 Oct 2025@zhusu has said that Sam liquidated $1.5bn of their positions illegally, and
Ryne Salame used inside info to trade against client positions to cash out $1bn pic.twitter.com/LMr2VzMA2l
With billions in investor funds still missing, liquidators are intensifying efforts to trace potential misconduct, misappropriations, or preferential transfers involving the former executives.
Bankman-Fried’s testimony will be recorded via video and stenographic means, subject to prison protocols.
It remains to be seen whether additional criminal referrals or civil claims will emerge from these proceedings.
FTX to Begin Next Round of Cash Distributions
As reported, FTX has announced that it will begin its next round of cash distributions to creditors on or around September 30, 2025. The record date for eligible claimants was set for August 15.
The payments will be processed through FTX’s designated distribution partners, including BitGo, Kraken, and Payoneer.
Meanwhile, a Chinese creditor representing over 300 users is opposing FTX’s proposal to restrict payouts in 49 jurisdictions, including China, arguing it is legally unfounded and unfair.
Earlier this year, FTX began repaying creditors after securing court approval for its redistribution plan, and to date, has returned approximately $6.2 billion.
FTX, once a dominant player in the crypto space, collapsed in November 2022 following a liquidity crisis triggered by revelations about its balance sheet.
The fallout led to criminal charges against founder Sam Bankman-Fried, who was sentenced in 2023 to 25 years in prison for defrauding customers and investors of more than $11 billion.
However, he is now projected to be released from federal prison on December 14, 2044, after serving less than 21 years of his 25-year sentence for fraud tied to the FTX collapse for good behavior.
He was also fined over $11 billion. Federal records confirm that Bankman-Fried has been moved from New York to a transfer facility in Oklahoma following nearly two years behind bars.
