A defense battle involving two major bankruptcy cases with an amount of $15.3 billion has officially begun. FTX recently submitted a 70-page document to the Delaware bankruptcy court, requesting the dismissal of Three Arrows Capital (3AC)'s massive claim, directly pointing out that the other party is attempting to "transfer its failed bets to other creditors".
Claim Amount Surge Draws Attention
3AC originally claimed $120 million in losses in June 2023, but raised the amount to $15.3 billion in November 2024. FTX formally opposed on June 11 this year, arguing that the claim lacks factual and legal basis.
3AC's report shows account net worth of $1.59 billion as of June 12, 2022, but FTX calculates it at only $284 million. 3AC accuses FTX of delaying account information and conducting "avoidable transactions", to which FTX counters that debts of $733 million and $60 million in withdrawals before liquidation were not included, and the real losses were caused by 3AC's high-leverage strategy.
Legality of Forced Liquidation
FTX's document indicates that according to credit and margin agreements, the platform has the right to liquidate $82 million in assets and convert them to stablecoins or fiat during market volatility to reduce associated risks. FTX emphasizes that the operation's goal was to protect other customers, not to destroy 3AC's asset value.
The court requires 3AC to respond by July 11, with a non-substantive evidence hearing by Chief Judge Karen Owens on August 12. This lawsuit not only determines the funding gaps in both bankruptcy cases but is also seen as a microcosm of crypto market leverage and risk management. The verdict may influence future regulatory directions and investor confidence. The market will see the outcome in August.
