FTX execs called to court over alleged 3AC liquidation

Three Arrows Capital is requesting to summon three FTX executives: Sam Bankman-Fried, Ryan Salame, and Caroline Ellison. If approved, Bankman-Fried’s deposition statement will take place on October 14, 2025.

In a recent court document, Three Arrows Capital has compelled the former FTX executives of one of the largest exchange bankruptcy cases ever recorded to provide testimonies and documents in court related to the alleged liquidation of 3AC’s $1.5 billion position.

The document titled “Notice of Intent to Serve Subpoena on Sam Bankman-Fried” requests that the former CEO of FTX Sam Bankman-Fried, who is currently serving time in a prison facility in California, to provide a disposition on October 14, 2025.

If the summon is approved, then Bankman-Fried will have to be transported from prison to a courtroom where he will have to testify under oath about the firm’s dealings with Three Arrows Capital or 3AC before its downfall.

In the document shared by FTX creditor Sunil Kavuri, the document not only summons Bankman-Fried but also his associates that were sentenced to jail time by courts due to their involvement in the scandal that defrauded customers of billions.

The names mentioned in the document include former Alameda Research CEO Caroline Ellison and former co-CEO of FTX Digital Markets, Ryan Salame.

According to Kavuri, 3AC co-founder Zhu Su accused Sam Bankman-Fried of force-liquidating $1.5 billion of 3AC’s positions illegally during the 2022 crypto crash. If this is true, it would mean that the exchange played a part in pushing 3AC off the ledge of insolvency.

Not only that, Zhu Su has also accused Salame of using insider information, such as knowledge of client orders and positions, to trade against them. He allegedly pocketed around $1 billion.

What is the connection between FTX and 3AC?

Back in June 2025, FTX’s bankruptcy estate denied claims from Three Arrows Capital. The hedge fund claimed that its account balance reached nearly $1.6 billion when the crypto exchange collapsed in mid-to-late 2022 . However, representatives said 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.”

“FTX creditors should not be a backstop for 3AC’s failed trades,” the estate wrote.

According to the filing, 3AC refused to acknowledge liabilities and is trying to get other creditors to cover losses from a heavily leveraged position.

In fact, 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 says it only liquidated $82 million, which was allowed under contract terms, and that doing so helped prevent the account from turning negative.

Initially claiming to hold $120 million in its account, 3AC expanded their claim to $1.53 billion in late November 2024.