After Three Arrows Capital (3AC) accused FTX of mistakenly liquidating its $1.53 billion assets, Binance co-founder Changpeng Zhao has questioned the role of FTX in the 2022 Luna/UST crash.
Interesting turn of the event. I had never known this before, but neither was surprised because they (FTX/3AC) were “close.”
Are you curious if FTX has any connection to LUNA/UST Crash/DEPEG in May 2022? https://t.co/oubjkhvfmc
– CZ🔶BNB (@CZ_BINANCE) March 14, 2025
Binance co-founder Changpeng Zhao (CZ) expressed his curiosity about the potential connection between LUNA/UST crash and FTX and 3AC, and weighed him based on his close relationship.
The former Vinance CEO said this after learning that the judge had allowed the three-arrow capital (3AC) to increase the claims against the bankrupt crypto exchange from $120 million to a substantial $1.53 billion.
Related: 3AC’s Su Zhu says: FTX crash could have been avoided
The ruling comes after 3AC alleged that FTX had settled its $1.53 billion in assets just two weeks before FTX itself collapsed. 3AC claimed that FTX was unable to obtain information early as it retained important data during the bankruptcy. Therefore, 3AC said it cannot collect all necessary information before the official claim deadline expires.
FTX fought back, arguing that the court should not enjoy the 3AC’s request, considering the delay in the update. Defunct Crypto Exchange said 3AC has filed a brand new claim.
The judge currently claims $1.53 billion on the 3AC side
However, the judge was on the side of 3AC. According to the judge, the 3AC update coincides with the underlying issue of liquidating FTX’s 3AC assets despite advance warnings to FTX regarding potential exposure to more important claims in an ongoing bankruptcy case. This is a major blow to FTX and its creditors.
Related: FTX Bankruptcy: $16 billion recovered, planned cash payments for customers
The judge’s decision clears the way 3AC pursues a $1.53 billion claim against FTX. The decision noted that 3AC acted in good faith and did not blind FTX, which is unfairly blind, if ongoing. This ruling could have a significant impact on the amounts available to other FTX creditors.
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