Johann Wilfred
- The FTX recovery trust has countered a $1.53 billion claim by Three Arrows Capital.
- The team behind liquidating FTX assets for fair compensation says Three Arrows Capital’s own trading strategies are to blame for its losses.
- Three Arrows Capital was one of the many crypto firms affected by 2022 market downturn for digital assets.
Former cryptocurrency exchange FTX’s recovery trust has responded to a $1.53 billion claim by Three Arrows Capital through a filing made on June 20, 2025.
Three Arrows Capital’s claim is one of the many filed by crypto companies and individuals against FTX. The company’s assets are now managed by a bankruptcy estate, which includes a team of liquidators trying to return as much money as they can to investors.
Three Arrows Capital’s claim was expanded from $120 million to $1.53 billion. The Delaware bankruptcy court overseeing the FTX estate granted permission to broaden the claim amount.
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The FTX recovery trust has argued that Three Arrows Capital’s claims have no basis, as the company’s losses are due to its own unsound trading strategies.
“3AC’s own risky strategy caused its collapse, and its own account activity— not any action by FTX Trading Ltd. (“FTX”)—resulted in a significant decline in the “value” associated with the 3AC Accounts in June 2022. Although the Joint Liquidators initially filed a proof of claim based solely upon a “foreclosure” upon assets in connection with a $120 million line of credit (the “Line of Credit”), they now assert claims for $1.53 billion (more than 12 times the amount originally sought),” read a key part of the preliminary statement.
The company also said Three Arrows Capital’s “Lost Assets” theory—which claims that the company had a positive $1.59 billion account balance on June 12, 2022, which declined over the coming days, therefore entitling the company to recover all of the losses from FTX—has no basis.
2022 crypto crash: Three Arrows Capital, Celsius, Terraform Labs
Three Arrows Capital was one of the multiple companies affected by the 2022 crash, which saw firms severely affected by a downturn in the crypto market initially sparked by the collapse of the Terra stablecoin.
At one point, Three Arrows Capital managed about $10 billion in assets under management, investing much of its capital in other crypto projects as per a report by CNBC. The crypto market crash wiped out most of its investments, rendering it unable to pay off investors and creditors.
