What Happened?
The joint liquidators of the defunct hedge fund Three Arrows Capital (3AC) have moved to subpoena former FTX CEO Sam Bankman-Fried, ex-Alameda CEO Caroline Ellison, and former FTX executive Ryne Miller Salame. The subpoenas relate to allegations involving over $1.5 billion in illegal asset liquidations, with depositions set for October 14, 2025.
Who Does this Affect?
This unfolding legal drama has major implications for the accused individuals and their associated organizations. Beyond that, investors who may have lost funds through the alleged illegal liquidations may be affected. Further, recovery efforts tied to the bankruptcies of FTX and 3AC – two high-profile collapses in crypto history – may also be impacted by these proceedings.
Why Does This Matter?
This matter is highly significant within the context of financial regulatory compliance and market integrity. If proven, these violations could further undermine investor confidence and potentially influence future regulatory responses to the crypto market. This case also highlights the potent intersection of financial technology, regulatory oversight, and the potential for misconduct in rapidly evolving markets.