After Three Arrows Capital (3AC) accused FTX of wrongfully liquidating $1.53 billion in assets, Binance co-founder Changpeng Zhao has now questioned FTX’s role in the 2022 LUNA/UST crash.
Interesting turn of events. I didn’t know this before, but not surprised either as they (FTX/3AC) were “close”.
I am curious if FTX had anything to do with the LUNA/UST crash/depeg in May 2022?
— CZ 🔶 BNB (@cz_binance) March 14, 2025
Binance co-founder Changpeng Zhao (CZ) weighed in, expressing curiosity about the LUNA/UST crash and its potential connection to FTX and 3AC, given their close relationship.
The former Binance CEO stated this after learning that the judge allowed Three Arrows Capital (3AC) to increase its claim against the bankrupt crypto exchange – from $120 million to a significant $1.53 billion.
Related: 3AC’s Su Zhu Speaks Out: FTX Crash Could Have Been Avoided
The ruling came after 3AC claimed FTX liquidated $1.53 billion of its assets just two weeks before FTX itself collapsed. 3AC argued it couldn’t have gotten the information sooner because FTX, in the midst of bankruptcy, held the crucial data. Therefore, 3AC said it could not gather all the necessary information before the official claim deadline expired.
FTX fought back, arguing that the court should not entertain 3AC’s request, considering the update’s lateness. The defunct crypto exchange said 3AC had brought a brand new claim, which the court should dismiss because it missed the filing deadline.
Judge Sides with 3AC, Claim Now $1.53 Billion
But the judge sided with 3AC. According to the Judge, 3AC’s latest information is consistent with the underlying issue of FTX liquidating 3AC’s assets, despite a prior warning to FTX on the potential exposure to more significant claims in the ongoing bankruptcy case. This is a major blow to FTX and its creditors.
Related: FTX Bankruptcy: $16 Billion Recovered, Cash Payments Planned for Customers
The Judge’s decision clears the way for 3AC to pursue its $1.53 billion claim against FTX. The decision noted that 3AC acted in good faith, and no party unfairly blindsided FTX in the ongoing case. The ruling could significantly impact the amount of money available to other FTX creditors.
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