FTX's Legal Triumph Over 3AC: Why FTT is Poised for a Bull Run

The crypto winter of 2022-2023 brought unprecedented turmoil, but now, as regulatory clarity emerges and legal battles conclude, a compelling opportunity is crystallizing in FTT (Fantom Token). FTX's recent rejection of Three Arrows Capital's ($3AC) $1.53 billion claim marks a critical inflection point. This article analyzes how FTX's contractual compliance, reduced liability exposure, and technical support at $0.74 position FTT for a rebound as regulatory and legal risks dissipate.

Legal Risks Mitigated: FTX's Contractual Defense

3AC's claim hinges on allegations that FTX liquidated $1.53 billion of its assets in 2022, contributing to its collapse. FTX's 94-page objection, filed in March 2025, dismantles this narrative. Key arguments include:
- Contractual Compliance: FTX asserts its $82 million liquidation of 3AC's crypto assets was permissible under margin agreements. This action was triggered by 3AC's failure to meet a $240 million margin call after the Terra LUNA crash, which had already eroded its balance to $284 million.
- 3AC's Self-Inflicted Losses: FTX highlights that 3AC's own withdrawals ($60 million) and leveraged trades (exposing $222 million to market declines) caused its collapse, not FTX's actions.
- Account Balance Dispute: FTX disputes 3AC's inflated $1.59 billion balance claim, arguing the true figure on June 12, 2022, was $1.017 billion in crypto offset by -$733 million in USD liabilities.

The upcoming August 12 court hearing will decide whether the $1.53 billion claim survives. If FTX prevails, it removes a $20 billion overhang on its bankruptcy estate, directly benefiting FTT holders. Even a partial rejection would reduce liability exposure, a bullish catalyst for FTT.

Asset Valuations Revisited: FTT's Undervalued Potential

FTT has languished near $0.74—its lowest since late 2022—despite FTX's progress in recovering funds. This disconnect reflects lingering legal uncertainty. Key valuation drivers:
1. Reduced Liability Exposure: A favorable ruling slashes the risk of FTT's value being diluted by 3AC's claims.
2. Creditor Payouts: FTX's $5 billion distribution to customers in 2024 signals operational resilience. As more recoveries materialize, FTT's utility (governance, staking) gains relevance.
3. Technical Support at $0.74: FTT has held this level since February 2025. A breakout above $1.20 (previous resistance) could trigger momentum buying.

Strategic Resilience: FTT's Dual Value Proposition

FTT's undervaluation ignores its dual role:
- FTX Ecosystem Utility: Holders receive discounted trading fees and voting rights. With FTX's recovery underway, these perks regain relevance.
- Regulatory Tailwinds: The EU's MiCAR regulations, which mandate asset segregation and transparency, align with FTX's post-bankruptcy governance reforms. Compliance here strengthens FTT's legitimacy.

Investment Thesis: Accumulate FTT Below $1.00

The catalyst timeline is clear:
- July 11, 2025: 3AC's final reply to FTX's objection is due. A weak rebuttal would signal FTT's upside.
- August 12, 2025: The court's ruling could slash FTT's liability overhang, triggering a short squeeze.

Risk/Reward:
- Buy Below $0.85: Accumulate in tranches, targeting $1.20 (2024 resistance) and $1.80 (pre-bankruptcy peak).
- Stop-Loss Below $0.70: A breach here suggests systemic crypto weakness, warranting caution.

Conclusion: FTT's Time to Shine

FTX's legal battle with 3AC is a turning point. A favorable ruling removes a major overhang, while FTT's technical support and regulatory tailwinds position it for a rebound. Investors should view the $0.74-$0.85 range as a buying opportunity. As crypto's legal framework stabilizes, FTT's utility and FTX's operational progress will drive a sustained rally. The path to $2.00—and beyond—is now clearer than ever.

Invest with discipline, and let the courts do the rest.