Altcoins News

Story: FTX Rejects 3AC’s $1.53B Claim as “Baseless”

By Dan Saada

1 / 15

FTX: 3AC Knew the Risks and Lost. In its filing, FTX accuses 3AC of making highly speculative, leveraged bets during one of the most…

2 / 15

The Liquidation Was Contractual — and May Have Helped. Another key point in FTX’s defense is the nature of the liquidation itself.

3 / 15

Legal Battle Far From Over. 3AC now has until July 11 to formally respond to FTX’s objection, with the next court hearing…

4 / 15

A Cautionary Tale of Crypto Excess. This courtroom drama underscores just how chaotic and interconnected the 2022 crypto collapse…

5 / 15

Final Thoughts. As the crypto industry works to rebuild its credibility, the FTX vs.

6 / 15

The legal fallout from the 2022 crypto crash is far from over, as FTX and Three Arrows Capital (3AC)—two of the industry’s most infamous casualties—are now locked in a…

7 / 15

Filed in a Delaware bankruptcy court, FTX’s objection outlines a detailed rebuttal, arguing that 3AC’s numbers don’t add up—and that the troubled hedge fund is responsible for…

8 / 15

Specifically, 3AC’s claim is based on the state of its FTX account as of June 12, 2022, when it alleges that FTX held and later liquidated $1.53 billion worth of assets.

9 / 15

After accounting for market declines and existing liabilities, FTX argues that only $284 million in net value remained, casting serious doubt on the validity of 3AC’s…

10 / 15

Another key point in FTX’s defense is the nature of the liquidation itself. The estate states that it only liquidated $82 million of 3AC’s assets and did so under pre-agreed…

11 / 15

By converting unstable crypto holdings into fiat currency, FTX argues, it actually protected a portion of 3AC’s capital from further loss during the market crash.

12 / 15

While FTX is aggressively seeking to recover funds through dozens of lawsuits, 3AC is simultaneously pursuing a $1.

13 / 15

Meanwhile, FTX founder Sam Bankman-Fried, who was convicted of fraud earlier this year, is now serving a 25-year prison sentence, with a scheduled release date in 2044.

14 / 15

For creditors and former customers, the fight for restitution remains tangled in years of litigation.

15 / 15

As the crypto industry works to rebuild its credibility, the FTX vs. 3AC battle serves as a harsh reminder of the dangers of unchecked risk and poor transparency.

The Currency Analytics

Want the full story?