3AC Subpoenas SBF, Ellison, Salame Over Alleged $1.5B Illegal Liquidation
The joint liquidators of defunct hedge fund Three Arrows Capital (3AC) have formally moved to subpoena former FTX CEO Sam Bankman-Fried, ex-Alameda CEO Caroline Ellison, and former FTX govt Ryne Miller Salame, over allegations involving over $1.5 billion in unlawful asset liquidations.
Key Takeaways:
- 3AC’s liquidators have subpoenaed SBF, Ellison, and Salame over alleged $1.5B in unlawful liquidations.
- SBF’s deposition is about for October 14, 2025, at Terminal Island federal jail.
- Zhu Su claims Salame used insider data to revenue $1B, intensifying scrutiny on FTX-linked executives.
A authorized discover filed in the US Bankruptcy Court for the District of Delaware on September 9 reveals that 3AC’s joint liquidators, Russell Crumpler and Christopher Farmer, intend to depose Bankman-Fried beneath Rule 45 of the Federal Rules of Civil Procedure.
The deposition is scheduled to happen on October 14, 2025, on the Federal Correctional Institution in Terminal Island, California, the place Bankman-Fried is presently being held.
Zhu Su Accuses SBF of Illegally Liquidating $1.5B in 3AC Assets
The transfer follows accusations by 3AC co-founder Zhu Su, who claims Bankman-Fried liquidated $1.5 billion of their positions with out correct justification.
Zhu additionally alleges that Ryne Salame exploited insider info to front-run trades towards shopper positions, finally cashing out over $1 billion earlier than the FTX collapse.
Ellison, who ran Alameda Research through the time of the alleged actions, can be anticipated to face questioning over the interconnected buying and selling and liquidation methods which will have performed a job in pushing 3AC into insolvency.
The subpoenas come as a part of broader restoration efforts tied to the bankruptcies of each FTX and 3AC, two of probably the most high-profile collapses in crypto historical past.
With billions in investor funds nonetheless lacking, liquidators are intensifying efforts to hint potential misconduct, misappropriations, or preferential transfers involving the previous executives.
Bankman-Fried’s testimony shall be recorded by way of video and stenographic means, topic to jail protocols.
It stays to be seen whether or not further felony referrals or civil claims will emerge from these proceedings.
FTX to Begin Next Round of Cash Distributions
As reported, FTX has introduced that it’ll begin its next round of cash distributions to collectors on or round September 30, 2025. The document date for eligible claimants was set for August 15.
The funds shall be processed by means of FTX’s designated distribution companions, together with BitGo, Kraken, and Payoneer.
Meanwhile, a Chinese creditor representing over 300 customers is opposing FTX’s proposal to restrict payouts in 49 jurisdictions, together with China, arguing it’s legally unfounded and unfair.
Earlier this 12 months, FTX started repaying collectors after securing courtroom approval for its redistribution plan, and up to now, has returned roughly $6.2 billion.
FTX, as soon as a dominant participant within the crypto house, collapsed in November 2022 following a liquidity disaster triggered by revelations about its stability sheet.
The fallout led to felony prices towards founder Sam Bankman-Fried, who was sentenced in 2023 to 25 years in jail for defrauding prospects and traders of greater than $11 billion.
However, he’s now projected to be released from federal prison on December 14, 2044, after serving lower than 21 years of his 25-year sentence for fraud tied to the FTX collapse for good habits.
He was additionally fined over $11 billion. Federal data verify that Bankman-Fried has been moved from New York to a switch facility in Oklahoma following practically two years behind bars.
The submit 3AC Subpoenas SBF, Ellison, Salame Over Alleged $1.5B Illegal Liquidation appeared first on Cryptonews.
