FTX lawyers have dismissed a recovery claim from Three Arrows Capital (3AC), asserting the losses resulted from 3AC's own risky trading strategies.
Three Arrows Capital's Claim
In June 2023, Three Arrows Capital's liquidators filed a $120 million claim in FTX's bankruptcy case, which was expanded to $1.53 billion in November 2024. They alleged breach of contract, fiduciary duty, and unjust enrichment.
FTX's Arguments
FTX's lawyers argue that the claim is illogical and baseless. They assert that 3AC took significant risks betting on rising cryptocurrency prices, which ultimately led to their downfall. They highlighted that 3AC should bear the responsibility for its financial decisions.
> "The Joint Liquidators ask this Court to force other Exchange customers and creditors to foot the bill for 3AC’s failed strategy by asserting illogical and baseless claims for $1.53 billion." > - FTX Lawyers.
Link to Terraform Labs
In August 2022, 3AC also filed a $1.3 billion claim against Terraform Labs, claiming the company misled them about the stability of tokens in the Terra ecosystem. The liquidators are seeking damages related to their investments in UST and LUNA, which lost value.
The situation surrounding Three Arrows Capital and FTX emphasizes the risks associated with cryptocurrency investments and highlights the importance of financial accountability.
