The lingering ghosts of the 2022 crypto market collapse continue to haunt the industry, with the bankrupt exchange FTX now fiercely contesting a massive $1.53 billion claim from the defunct hedge fund Three Arrows Capital (3AC). In a recent court filing, FTX's estate argued that 3AC is owed nothing, attributing the hedge fund's demise to its own reckless trading strategies. This legal battle underscores the complex and often contentious process of untangling the financial wreckage of the last bear market, with significant implications for creditors awaiting recovery. According to FTX's lawyers, the claim is a "false premise that lacks any legal or factual merit," setting the stage for a high-stakes confrontation in bankruptcy court.

FTX vs. 3AC: A Battle Over Billions

FTX's legal team presented a detailed rebuttal to 3AC's claim, asserting that the hedge fund's aggressive, leveraged bets on rising cryptocurrency prices were the sole cause of its downfall. The filing states that on June 12, 2022, just before its collapse, the net value of 3AC's accounts on the exchange was only $284 million, a figure derived from $1.017 billion in digital assets minus a $733 million negative cash balance. FTX contends that the $1.2 billion discrepancy between this figure and 3AC's claim stems from market price declines and 3AC's own asset withdrawals, not actions taken by the exchange. The filing also clarifies that the only FTX-ordered liquidation occurred on June 14, 2022, involving an $82 million crypto-to-cash swap that they argue ultimately benefited 3AC. This counters the narrative from 3AC's liquidators, who had previously received court permission to expand their claim from $120 million after discovering what they believed was an undocumented $1.53 billion liquidation by FTX.

Trump Media's BTC Strategy Signals Corporate Confidence

In a separate development that highlights the evolving relationship between traditional finance and digital assets, Trump Media and Technology Group (DJT) announced a $400 million share buyback program. Critically for the crypto market, CEO Devin Nunes confirmed the repurchase would be funded separately from its recently established Bitcoin treasury. This decision is a powerful signal that the company views its BTC holdings as a strategic, long-term asset, not merely as operational cash to be deployed for shareholder initiatives. The market reacted positively to the news, with DJT shares climbing over 3.8% to $18.50 in early Monday trading. This move could serve as a blueprint for other publicly traded companies holding Bitcoin, demonstrating a method to enhance shareholder value without liquidating core crypto positions, thereby reinforcing the narrative of corporate crypto adoption.

Crypto Market Reacts with Altcoin Strength

While legal dramas play out, the broader crypto market is charting its own course, with Bitcoin showing stability and several altcoins demonstrating notable strength. The BTCUSDT pair is trading around $109,149, marking a modest 0.86% gain over the past 24 hours. However, the real story for traders lies in the altcoin-to-BTC pairs. Avalanche (AVAX) is a clear standout, with the AVAXBTC pair surging an impressive 6.73% on significant 24-hour volume of over 859 BTC. The pair traded in a wide range between 0.00021210 and 0.00022890 BTC, indicating strong buying pressure and potential for a continued breakout. Traders are closely watching this pair for signs of sustained outperformance.

This positive sentiment is not isolated to AVAX. Other major altcoins are also gaining ground against Bitcoin, suggesting a potential rotation of capital. The SOLBTC pair is up 1.87%, while LINKBTC has risen 1.02% on exceptionally high volume of over 2,500 BTC, signaling strong institutional or whale interest in Chainlink. The ETHBTC pair, a crucial barometer for the altcoin market, has also climbed 1.42%, attempting to push past its 24-hour high of 0.00238400. A decisive move above this level could trigger a broader rally across the altcoin sector. The current market action suggests that while the industry is still dealing with the fallout from 2022, forward-looking corporate strategies and renewed trader confidence are paving the way for fresh opportunities, particularly in altcoins showing relative strength against Bitcoin.