Introduction to the FTX and 3AC Case

Three Arrows Capital is taking a significant step in its pursuit of justice by requesting to summon three key FTX executives: Sam Bankman-Fried, Ryan Salame, and Caroline Ellison. This move is part of an ongoing saga involving one of the largest exchange bankruptcy cases in history.

The Subpoena Request

A recent court document reveals that Three Arrows Capital has compelled the former FTX executives to provide testimonies and documents in court. The document, titled “Notice of Intent to Serve Subpoena on Sam Bankman-Fried,” requests that Bankman-Fried, currently serving time in a California prison facility, provide a disposition on October 14, 2025.

Implications of the Summon

If the summon is approved, Bankman-Fried will be required to testify under oath about FTX’s dealings with Three Arrows Capital before its downfall. This will involve transporting him from prison to a courtroom, where he will face questioning about the firm’s actions.

Other Executives Involved

The document shared by FTX creditor Sunil Kavuri also summons former Alameda Research CEO Caroline Ellison and former co-CEO of FTX Digital Markets, Ryan Salame. These executives, like Bankman-Fried, are expected to provide insight into the events leading up to the bankruptcy.

Allegations Against FTX Executives

3AC co-founder Zhu Su has accused Sam Bankman-Fried of force-liquidating $1.5 billion of 3AC’s positions illegally during the 2022 crypto crash. Additionally, Zhu Su has accused Salame of using insider information to trade against clients, allegedly pocketing around $1 billion.

Connection Between FTX and 3AC

The connection between FTX and 3AC is complex and has been the subject of much controversy. In June 2025, FTX’s bankruptcy estate denied claims from Three Arrows Capital, stating that the hedge fund’s account balance reached nearly $1.6 billion when the crypto exchange collapsed in mid-to-late 2022.

Dispute Over Claims

However, representatives of FTX argued that the net value only reached around $284 million after subtracting $733 million in margin debt. In a 94-page objection, lawyers asked the judge to fully disallow 3AC’s claim, calling it “illogical and baseless.” The estate asserted that FTX creditors should not be a backstop for 3AC’s failed trades.

Details of the Objection

The objection stated that most of the $284 million evaporated over two days in June 2022 when the crypto market crashed. Of that amount, $222 million was lost to market declines, and another $60 million was withdrawn by 3AC itself. The exchange claimed that it only liquidated $82 million, which was allowed under contract terms, and that doing so helped prevent the account from turning negative.

Evolution of 3AC’s Claim

Initially, 3AC claimed to hold $120 million in its account, but this figure was later expanded to $1.53 billion in late November 2024. This significant increase has raised questions about the validity of 3AC’s claim and its dealings with FTX.

Conclusion

The case between FTX and 3AC continues to unfold, with new developments and allegations emerging regularly. As the situation progresses, it will be important to monitor the actions of all parties involved, including Sam Bankman-Fried, Ryan Salame, and Caroline Ellison, as they face scrutiny over their roles in the collapse of FTX and the alleged wrongdoing that occurred. Visit bitpulse for more updates on this story.