The lawsuit dates back to 2023, when 3AC’s liquidators first sought $120 million, later amended to $1.53 billion after a court order in March 2025. 3AC alleges that FTX unlawfully closed and liquidated the fund’s accounts, appropriating the funds to offset debt—actions the hedge fund claims accelerated its collapse.
3AC accuses FTX of breaching fiduciary duties and unjust enrichment. FTX, however, disputes these allegations, arguing that the claim rests on “unfounded premises, inaccurate figures, and a disregard for the actual facts.” The exchange acknowledges forcibly liquidating $82 million in positions, but insists this was permitted under the credit agreement and that 3AC’s downfall was the result of its own “high-risk trading strategy.”
FTX claims 3AC itself breached terms when its balance fell below $240 million following the UST stablecoin collapse. The exchange alleges that, despite repeated margin calls, 3AC withdrew $18 million in ETH, forcing FTX to liquidate positions to prevent a negative account balance. FTX maintains that the liquidated sum—$82 million—had minimal bearing on 3AC’s demise.
FTX’s filing further alleges that 3AC’s liquidators arrived at the $1.53 billion figure using inaccurate account balances dated June 12, 2022. In FTX’s view, “joint liquidators are asking the court to make other clients and creditors pay for 3AC’s failed strategy, making unreasonable and illogical claims.”
3AC has until July 11, 2025, to respond. A court hearing is set for August 12.