3AC Subpoenas Bankman-Fried Over $1.5B FTX Liquidation Dispute

3AC seeks testimony from Bankman-Fried, Ellison, and Salame over alleged $1.5B unauthorized liquidations.

FTX estate disputes claims, stating only $82M was liquidated and losses stemmed from market conditions.

FTX has repaid $6.2B to creditors, though 49 jurisdictions remain excluded from upcoming distributions.

Three Arrows Capital (3AC) has subpoenaed Sam Bankman-Fried and former FTX executives in a dispute over alleged unauthorized liquidations worth more than $1.5 billion. The case connects two of the largest failures in cryptocurrency history and is scheduled to bring Bankman-Fried back into court despite his ongoing prison sentence.

Testimony Scheduled From Prison

Court records confirm 3AC’s liquidators have requested testimony from Bankman-Fried, Caroline Ellison, and Ryan Salame. According to an X post by Sunil, the deposition is scheduled for October 14, 2025, if the court grants approval.

Bankman-Fried would be transported from a California federal prison to appear under oath. The testimony is expected to revisit events from 2022, when 3AC collapsed in June and FTX filed for bankruptcy later that year.

The subpoenas signal renewed efforts to uncover details of FTX’s role in the liquidation of 3AC’s trading positions. Investigators want clarity on whether actions taken by FTX contributed directly to the hedge fund’s downfall.

Allegations of Unauthorized Actions

3AC co-founder Zhu Su has accused FTX of forcing the liquidation of more than $1.5 billion in positions. He said these moves occurred without authorization and worsened the hedge fund’s collapse during the broader market downturn.

Ellison, who previously led Alameda Research, faces scrutiny over her trading decisions during the same period. Salame has also been accused of profiting from insider information and allegedly front-running trades that generated more than $1 billion.

The claims, if proven, could reshape the legal responsibilities of exchanges when handling large counterparties during volatile market conditions.

FTX Estate Response

The FTX estate rejected 3AC’s accusations in June 2025, calling the figures exaggerated. Estate lawyers stated that 3AC’s actual account balance was closer to $284 million. In its 94-page objection, the estate argued that most of 3AC’s losses came from market conditions, not unlawful action. The filing also stated FTX liquidated only $82 million, which it described as permitted under contract terms.

According to FTX’s position, creditors of the bankrupt exchange should not cover losses linked to 3AC’s strategies. While disputes continue in court, the FTX estate has distributed around $6.2 billion to creditors since 2022. Another round of payouts is planned for September 30, 2025, through partners including BitGo, Kraken, and Payoneer.

However, more than 300 creditors in excluded jurisdictions, including China, have challenged the payout process. They argue that blocking 49 jurisdictions lacks legal basis and unfairly restricts access to repayments. The October testimony of Bankman-Fried could influence both the outcome of 3AC’s recovery efforts and future standards for crypto bankruptcy proceedings.