FTX Trustee Challenges 3AC’s $15.3 Billion ETH Claim, Citing Market Losses and Withdrawals

FTX’s bankruptcy trustee has formally challenged the $15.3 billion claim lodged by Three Arrows Capital (3AC), urging the court to dismiss it entirely. The trustee argued that 3AC’s financial setbacks stemmed from market volatility and internal withdrawals, rather than any direct impact from FTX’s operations. Earlier this year, a bankruptcy court had notably increased 3AC’s claim from $1.2 billion to $15.3 billion, intensifying scrutiny on the case.

In a recent development, 3AC alleged that FTX sold off approximately $15 billion in assets shortly before its collapse, citing newly uncovered evidence. However, FTX’s legal team refuted these allegations, highlighting that the claim relied on flawed assumptions and inaccurate data. They emphasized that following the Terra ecosystem crash in June 2022, 3AC’s account balance fell below $240 million without margin replenishment, coupled with an $18 million ETH withdrawal.

To mitigate potential losses, FTX liquidated $8.2 billion in assets, aiming to cover an $18 million exposure linked to 3AC’s account. The court has set a deadline of July 11th for 3AC’s formal response, with a hearing scheduled for August 12th to resolve the dispute.