FTX Lawyers Dismiss 3AC’s $1.5B Claim as Legally Unfounded

FTX's legal team has strongly rejected a $1.5 billion claim from the defunct hedge fund Three Arrows Capital (3AC), calling it baseless and attributing it to 3AC's own trading missteps. The exchange is pushing for a complete dismissal, contending that 3AC violated margin agreements and disregarded warnings before an $82 million liquidation. This legal clash follows a November 2024 court decision that permitted 3AC to increase its claim from $120 million. The dispute highlights the ongoing tensions in the crypto industry as firms navigate post-collapse liabilities and legal accountability.

FTX Lawyers Reject 3AC's $1.5B Claim as Baseless Amid Legal Battle

FTX attorneys have vehemently opposed a $1.5 billion claim from the collapsed hedge fund Three Arrows Capital (3AC), labeling it as legally unfounded and a result of 3AC's own trading failures. The exchange seeks full dismissal, arguing that 3AC breached margin terms and ignored warnings prior to an $82 million liquidation.

The dispute stems from a November 2024 court ruling allowing 3AC to escalate its claim from $120 million, citing new evidence tied to asset liquidations. 3AC alleges FTX liquidated $1.5 billion of its holdings weeks before its collapse—a claim FTX dismisses as relying on flawed premises and inaccurate data.

FTX's filing highlights 3AC's margin breaches during the Terra collapse fallout, framing the hedge fund's actions as reckless. The legal battle underscores the ongoing fallout from 2022's crypto contagion, with creditors jostling for position in bankruptcy proceedings.

FTX Rejects 3AC's $1.53B Claim as 'Illogical and Baseless' in Court Filing

FTX has formally objected to a $1.53 billion claim by the liquidators of Three Arrows Capital (3AC), calling it "illogical and baseless" in a Delaware bankruptcy court filing. The collapsed exchange argues that 3AC's aggressive speculative bets—not FTX's actions—caused the hedge fund's downfall during crypto's 2022 market crash.

The dispute escalates a legal battle between two emblematic failures of the last crypto winter. FTX contends that 3AC's liquidators are attempting to make other creditors pay for the hedge fund's miscalculations, stating bluntly: "3AC is owed nothing." The claim has ballooned from $120 million to $1.53 billion since June 2023.