Three Arrows Capital Issues Subpoenas to SBF, Salame, and Ellison Over Alleged Illegal Liquidation

According to court filings, 3AC liquidators seek testimony from former FTX and Alameda executives over $1.5 billion in disputed liquidations, with Bankman-Fried scheduled to testify from prison in October 2025.

Summary

Three Arrows Capital’s joint liquidators have subpoenaed Sam Bankman-Fried, Caroline Ellison, and Ryne Salame in connection with alleged illegal liquidations of over $1.5 billion in assets. Court filings show Bankman-Fried is scheduled to testify on October 14, 2025, from Terminal Island prison. Zhu Su, 3AC co-founder, claims Bankman-Fried unlawfully liquidated their positions, while Salame allegedly exploited insider information to secure $1 billion before FTX collapsed. Ellison is expected to answer questions on Alameda’s trading strategies. The subpoenas are part of broader recovery efforts tied to the bankruptcies of FTX and 3AC. In parallel, FTX announced a new round of creditor cash distributions starting September 30, 2025, with $6.2 billion already repaid to date.

Terms & Concepts
  • Subpoena: A legal document ordering someone to attend court or produce evidence, typically in the context of an investigation or lawsuit.
  • Insider Trading: The illegal practice of trading on the stock exchange to one's own advantage through having access to confidential information.