A settlement between defunct crypto lending company BlockFi and the collapsed hedge fund Three Arrows Capital (3AC) was approved by a US bankruptcy court on February 7. The specific terms of the settlement, though, remain confidential. According to the official document, the approval effectively resolved any counterclaims between the parties. Judge Kaplan of the New Jersey Bankruptcy Court, in the Tuesday hearing, expressed that it doesn’t make sense to demand disclosure of settlement details. Prior to the latest development, the US Trustee urged the judge to reveal the details, arguing that the debtors had not provided sufficient reasons to keep the information undisclosed. BlockFi had previously requested to seal the information in January, citing its sensitive nature
Topics:
Chayanika Deka considers the following as important: AA News, blockfi, three arrows capital
This could be interesting, too:
Mandy Williams writes Coinbase Adds Support for Bitcoin Lightning Network
Mandy Williams writes US DOJ Arrests ‘Bitcoin Jesus’ Roger Ver for M Tax Evasion
Andrew Throuvalas writes Bitcoin Newbies Are Panic Selling At A Loss After Price Crunch: Glassnode
Andrew Throuvalas writes Bitcoin Price Recovers After Fed Announces No Rate Hike At FOMC
A settlement between defunct crypto lending company BlockFi and the collapsed hedge fund Three Arrows Capital (3AC) was approved by a US bankruptcy court on February 7. The specific terms of the settlement, though, remain confidential.
According to the official document, the approval effectively resolved any counterclaims between the parties. Judge Kaplan of the New Jersey Bankruptcy Court, in the Tuesday hearing, expressed that it doesn’t make sense to demand disclosure of settlement details.
Prior to the latest development, the US Trustee urged the judge to reveal the details, arguing that the debtors had not provided sufficient reasons to keep the information undisclosed.
BlockFi had previously requested to seal the information in January, citing its sensitive nature and potential negative impact on future legal proceedings.
In November 2022, BlockFi sought Chapter 11 bankruptcy protection, a move prompted in part by the collapse of crypto exchange FTX, which had filed for bankruptcy just two weeks earlier. BlockFi’s financial troubles were exacerbated by its significant ties to the failed crypto exchange.
BlockFi’s Chapter 11 plan to reimburse its 10,000 creditors received approval from the bankruptcy court in September 2023.
Subsequently, in October, the company announced its successful emergence from bankruptcy and initiated creditor repayments.
BlockFi claimed that 3AC owed them $129 million, while the latter argued that the former owed $280 million.
This legal dispute was just one aspect of the wider upheaval within the crypto sector, with various entities grappling with financial difficulties and legal disputes.