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3AC Liquidators Subpoena Former FTX Executives Over Alleged $1.5B in Illegal Liquidations

Three Arrows Capital’s legal move targets Sam Bankman-Fried, Caroline Ellison, and Ryan Salame over $1.5 billion in alleged illegal liquidations and insider trading activities.

Summary

Three Arrows Capital’s liquidators have subpoenaed Sam Bankman-Fried, Caroline Ellison, and Ryan Salame, seeking their testimonies regarding allegations of illegal liquidations of $1.5 billion in 3AC positions. Bankman-Fried’s deposition is scheduled for October 14, 2025, while claims of insider trading by Salame are also part of the case. The case follows the collapse of both 3AC and FTX, with efforts continuing to recover lost funds.

Terms & Concepts
  • Subpoena: A legal document that commands an individual to testify or produce evidence in a legal proceeding.
  • 3AC (Three Arrows Capital): A now-defunct cryptocurrency hedge fund that filed for bankruptcy in 2022 after significant financial losses, with ongoing legal actions related to its collapse.
  • Insider Trading: The illegal practice of trading a security based on confidential, non-public information about the company.