Newton Gitonga
Most digital assets have tested crucial support levels as escalated geopolitical tensions saw Bitcoin briefly plunging below the $100,000 psychological mark over the weekend.
While altcoins saw minor recoveries as Bitcoin soared to $101,569 during this publication, FTT demonstrated strength by holding a vital support barrier despite new legal turbulence linked to the insolvent exchange.
FTX’s native token trades at $0.7645, above the key barrier of $0.74.
The altcoin’s stability comes after reports that FTX lawyers rejected Three Arrows Capital’s $1.53 billion claim.
According to Friday’s court filing, the attorneys argued that the hedge fund’s allegations “lacks any legal or factual merit, and, in fact, 3AC is owed nothing.”
This legal update has sparked interest among crypto enthusiasts, rekindling conversations over accountability and carelessness during FTX’s 2022 debacle.
FTX slams 3AC’s $1.53B claim as deflection, blaming 3AC’s reckless trades on GBTC and LUNA.
FTX says it won’t let others rewrite history to dodge responsibility.
FTX’s firm dismissal
The renewed dispute centers around a staggering claim Three Arrows Capital filed against FTX in the ongoing insolvent case.
The claim was $120 million in 2023 but grew tenfold after a bankruptcy court allowed the hedge fund to increase it to $153 billion during a November 2024 ruling.
3AC asserts that FTX liquidated its assets in 2022, fueling its collapse.
However, FTX’s attorneys aren’t buying that narrative.
They stated:
The valid Liquidation that the Joint Liquidators assert is actionable did not benefit FTX; it benefited 3AC. The Joint Liquidators’ $1.53 billion headline number is fiction, and their “Lost Assets” theory cannot possibly provide a basis to even allege – let alone prove- any claim.
FTX is in the process of compensating $5 billion to its creditors, and the lawyers trust Three Arrows Capital wants to benefit from these efforts.
3AC’s collapse from FTX lawyers’ perspective
The attorneys allege that the hedge fund’s debacle was self-inflicted as it materialized from excessive margin and spot trading, which included using a $120 million credit line extension by FTX.
They highlighted a key event in June 2022 after Terra’s crash.
Three Arrows Capital account with FTX dipped beneath the $240M margin requirement at the time.
Rather than addressing the issues, 3AC continued withdrawing funds, reportedly $18M in Ethereum, ignoring margin calls.
That agreement violation forced FTX to liquidate 3AC’s account – which helped recover $82 million.
The lawyers maintain that the exchange’s decision followed the contract terms and cannot attract legal consequences
FTT’s price outlook
FTX’s native token trades at $0.7659. FTT has gained over 5% on its daily chart as bears dominated the entire crypto space.
Moreover, the alt hovers above the vital support of $0.74, displaying resilience amidst regulatory disputes and broad market weakness.
Nevertheless, the native coin lacked utility since FTX’s collapse, which saw it plummet from all-time highs above $77.
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