Key Takeaways
- 3AC alleges FTX illegally liquidated $1.5 billion of its positions.
- The exchange claimed that 3AC held just $284 million.
- FTX will begin a third round of creditor repayments at the end of September.
Three Arrows Capital (3AC) is compelling FTX execs Sam Bankman-Fried (SBF), Caroline Ellison, and Ryan Salame to return to court as its legal case against the defunct exchange drags on.
Back to Court
The document from 3AC alleges that SBF illegally liquidated $1.5 billion of 3AC’s positions.
Furthermore, it posits that Ryan Salame took advantage of insider information to trade against client positions and cash out a hefty $1 billion.
Therefore, 3AC has resolved to subpoena SBF, Ryan Salame, and Caroline Ellison and attempt to drag them back to court for testimony.
Should the summon request be approved, SBF, who is currently serving jail time in a California prison facility, is slated to give his deposition on Oct. 14, 2025.
If found to be true, FTX could be responsible for pushing 3AC into insolvency.
This could mark a turning point for 3AC’s recovery efforts and set precedents for how future crypto bankruptcies transpire.
Objection
In June 2025, FTX lawyers filed a 94-page objection to 3AC’s claim that its account balance was almost $1.6 billion.
Whereas, FTX claimed it held a value of $284 million after subtracting $733 million in margin debt.
The filing argues that most of this value fell in 2022 due to the crypto market downturn.
The filing claims FTX liquidated a paltry $82 million, which was allowed under contract terms. 3AC allegedly withdrew $60 million.
3AC’s initial claim was for $120 million in mid-2023, and increased to $1.53 billion in November 2024.
Repayments to affected clients are ongoing. FTX will initiate another round of cash redistribution to affected investors on or around Sept. 30, 2025.
So far, around $6.2 billion has been repaid.
That said, not everyone is getting their funds back as users from 49 ‘restricted’ jurisdictions have been excluded from the payouts.
Eddie is a gaming and crypto writer at CCN. Covering the often weird and wonderful world of Web3 with an adoring, but skeptical eye.
Prior to CCN, Eddie has spent the past seven years working his way through the crypto, finance, and technology industry. He began with PR and journalism with Bitcoin PR Buzz and BitcoinNews.com, eventually working his way to become a copywriter with a dozen firms, including the likes of Polkadot before returning to journalism in 2023.
Having studied Radio production and journalism at University in the UK, Eddie spent a few years making podcasts and presenting on a local London radio station as he built up his writing chops.
A lifelong skateboarder, Eddie can often be found at the skatepark or touring the streets looking for something new to try. That, or kicking back playing JRPGs on his original PSP.
