The legal feud between bankrupt FTX and collapsed 3AC has intensified , as FTX lawyers formally object to the latter’s $1.53 billion recovery claim. Filed in the U.S. Bankruptcy Court for the District of Delaware, the objection argues that the claim is both unfounded and based on speculative reasoning. It also adds that FTX creditors should not be held responsible for 3AC’s failed trading strategy. The claim in question stems from an initial $120 million filing made by 3AC’s liquidators in June 2023. It was later expanded in November 2024 to $1.53 billion, alleging breach of contract, breach of fiduciary duty, and unjust enrichment. The liquidators argue that FTX liquidated 3AC’s crypto holdings in 2022 in a way that contributed to its collapse. U.S. Chief Bankruptcy Judge John Dorsey allowed the claim to proceed earlier this year, prompting a detailed rebuttal from FTX. FTX: “3AC’s Losses Are Self-Inflicted” In its latest objection, FTX asserted that 3AC knowingly engaged in high-risk bets that fell apart when crypto markets crashed in 2022. “3AC bet heavily on rising crypto prices, and when the market turned, it couldn’t absorb the losses,” the filing stated. FTX lawyers added that forcing other customers to cover 3AC’s losses would be unfair and legally unjustified. FTX also challenges the figures used by 3AC in its filing. The crypto exchange claims that on June 12, 2022, 3AC’s actual crypto balance stood at $1.02 billion—far less than the $1.59 billion claimed by the hedge fund—and its USD debt was $733 million, not the $1.3 billion asserted. The so-called “lost asset theory” presented by 3AC, FTX argues, rests on a flawed assumption that subsequent losses should be retroactively recovered. FTX maintains that only $284 million of 3AC’s funds were actually available and that the $82 million liquidation conducted by the exchange was contractually permitted. In fact, FTX argues this move helped 3AC by converting volatile assets into more stable fiat holdings, rather than causing financial harm. Legal Claim Cases Far From Over Both FTX and 3AC continue to pursue separate legal efforts to recover funds from other collapsed firms. 3AC has a pending $1.3 billion claim against Terraform Labs , while FTX is aggressively filing lawsuits to retrieve lost assets as part of its own bankruptcy proceedings. 3AC has until July 11 to respond to FTX’s objection, and a hearing is scheduled for August 12 before Chief Judge Karen Owens. The outcome may have broader implications for creditor payouts in ongoing crypto bankruptcy cases. The post FTX Disputes Three Arrows Capital’s $1.53B Claim, Blames Risky Trading appeared first on TheCoinrise.com .
