FTX Lawyers Want $1.53 Billion 3AC Claim Tossed

FTX says liquidation was only for $82 million

In the objection, lawyers acting for FTX claim the only liquidation against 3AC was for $82 million in crypto, which was “contractually permitted” under the credit and margin agreements to ensure the firm complied with account balance requirements.

Its also claimed in the objection that the liquidation did not reduce the overall account balance because the value was added to the fiat 3AC account in USD.

“Notably, the $82 million Liquidation benefited 3AC by preserving the value of the 3AC Accounts. Through the Liquidation, 3AC exited deteriorating positions in digital assets in favor of stable positions in fiat currency,” FTX said in the objection.

3AC has until July 11 to file a reply to FTXs objection. A non-evidentiary hearing is set for Aug. 12 before Chief Judge Karen Owens in the US Bankruptcy Court for the District of Delaware.

FTX and 3AC hunting down alleged debts

3AC has also pursued claims against collapsed crypto firm Terraform Labs through a $1.3 billion claim in Terras bankruptcy case.

FTX, which filed for bankruptcy in November 2022, has also been undertaking its own recovery efforts to reclaim funds with a flurry of lawsuits.