FTX Trust Opposes Three Arrows’ $1.53 Billion Bankruptcy Claim

A trust recovering funds for bankrupt FTX Trading Ltd. objected to a $1.53 billion claim from collapsed cryptocurrency hedge fund Three Arrows Capital Ltd., saying it’s baseless and speculative.

Liquidators for 3AC lack sufficient facts and law, and their arguments are “masquerading as a proof of claim,” the FTX trust said in its June 20 filing in the US Bankruptcy Court for the District of Delaware. The claim should be disallowed, the trust said.

Judge John T. Dorsey allowed 3AC’s amended claim in March, overruling objections that it was filed too late. 3AC filed its proposed revised claim in November 2024, asserting preference claims under British Virgin Islands law, as well as turnover, conversion, unjust enrichment, and breach of contract.

3AC argued that it’s entitled to recover in full because its FTX exchange accounts purportedly had a positive balance of $1.59 billion on June 12, 2022, and that the amount declined thereafter, the trust said.

“They ignore that the entire loss in account value resulted from market price declines and 3AC’s own withdrawals, not any action taken by FTX,” the trust said.

Initially, 3AC filed a proof of claim associated with a $120 million line of credit. A total $284 million was in the 3AC accounts on June 12, 2022, the objection said.

The actual $284 million value of 3AC assets were then inflated by more than $1.2 billion, the trust said. A comprehensive account balance was used to determine the size of each customer claim in the bankruptcy, according to the filing.

3AC’s carve up of separate account balances shows that the account “had a negative USD balance and a positive digital asset balance,” the trust said.

“There is no mystery or uncertainty about the decline in the value of these assets, and no one took anything from the 3AC accounts other than 3AC itself,” the trust said.

The 3AC liquidators didn’t immediately respond to a request for comment.

FTX won court approval in October 2024 to repay customers whose digital assets were locked on the platform when it imploded in 2022.

Sullivan & Cromwell LLP and Landis Rath & Cobb LLP represent the trust. Latham & Watkins LLP and Pashman Stein Walder Hayden PC represent the 3AC liquidators.

The case is FTX Trad. Ltd., Bankr. D. Del., No. 22-11098, objection 6/20/25.