FTX has pushed back against a massive $1.53 billion claim filed by defunct hedge fund Three Arrows Capital (3AC).
In a recent court filing, the bankrupt crypto exchange argued that 3AC’s own reckless trading—not FTX’s actions—led to its downfall.
The exchange insists it holds no responsibility for the losses Three Arrows incurred during the crypto market crash in June 2022.
FTX: 3AC Collapse Was Self-Inflicted
According to FTX’s legal team, 3AC borrowed heavily to bet on rising crypto prices, despite lacking the necessary capital. When the market turned, those leveraged positions unraveled quickly.
“3AC bet big that cryptocurrency prices would increase using cash it did not have,” FTX’s attorneys stated. “When prices instead plummeted, 3AC liquidated its risky bets and pulled funds from FTX.”
The filing claims that any decline in account value was due to 3AC’s own aggressive trades—not FTX’s platform or policies.
Multi-Billion-Dollar Dispute Could Reshape Crypto Bankruptcy Cases
The dispute now sits at the center of one of crypto’s most high-profile bankruptcies. 3AC, which collapsed in mid-2022, is seeking to recover over $1.5 billion in assets it claims were lost while using FTX.
FTX, itself undergoing bankruptcy proceedings, maintains that the claim is unjustified and should be dismissed.
The case could set precedent for how courts handle risk and accountability when multiple collapsed firms try to recoup losses from one another.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/ftx-rejects-1-53b-claim-by-three-arrows-blames-risky-bets/