On June 21, 2025, the cryptocurrency exchange FTX filed a motion in court to dismiss the lawsuit from the investment fund Three Arrows Capital (3AC) for $1.53 billion. This is evidenced by court documents.
This is reported by Business • Media
The Essence of the Conflict Between FTX and 3AC
The liquidators of 3AC are demanding that FTX compensate for funds that they believe were forcibly liquidated from the fund’s accounts. They claim that the exchange’s actions contributed to the fund’s bankruptcy and led to its financial collapse. Initially, in 2023, the claim amount was $120 million, but in March 2025, the court agreed to increase it to $1.53 billion.
Positions of the Parties and Further Actions
According to the liquidators, FTX unilaterally closed the fund’s accounts, using the funds to settle debts. 3AC accuses the exchange of breaching fiduciary duties and unjust enrichment. Meanwhile, FTX’s lawyers argue that the lawsuit is based on unfounded assumptions, inaccurate calculations, and a disregard for the actual circumstances.
“The joint liquidators are asking the court to force other clients and creditors of the exchange to pay for 3AC’s failed strategy by making illogical and unfounded claims for $1.53 billion,” FTX stated.
FTX acknowledges the forced liquidation of $82 million in funds but emphasizes that this could not have caused the fund’s bankruptcy. The exchange highlights that the liquidation was stipulated by the terms of the credit line opened for 3AC, and the fund itself breached the contract when its account balance fell below $240 million after the collapse of the UST stablecoin. According to FTX representatives, after the fund ignored the exchange’s request and instead withdrew $18 million in Ethereum, FTX was forced to liquidate the position to prevent a negative balance in 3AC’s account.
The documents also indicate that the claim amount of $1.53 billion is calculated based on inaccurate data regarding account balances as of June 12, 2022.
According to the schedule, the 3AC fund must submit its response by July 11, 2025, and the hearing in the case is set for August 12, 2025.