BlockFi Attempts to Block FTX and Three Arrows Capital from Retrieving Funds to Pay Creditors
Crypto lender BlockFi is trying to prevent bankrupt entities FTX and Three Arrows Capital from reclaiming millions of dollars to repay their own creditors. BlockFi estimates that legal battles with FTX and Three Arrows Capital could cost its customers up to $1 billion.
Main Points:
- BlockFi claims that FTX misappropriated the $5 billion it had initially lent, resulting in its bankruptcy.
- BlockFi intends to block attempts by FTX and Three Arrows Capital to retrieve funds and safeguard the interests of its own creditors.
- FTX had given BlockFi $400 million in an attempt to remedy the situation, but BlockFi argues that this was not a standard loan agreement.
- BlockFi owes billions to over 100,000 creditors, including $1 billion to its largest creditors and $220 million to Three Arrows Capital.
- BlockFi’s creditors accuse the company of ignoring warnings and red flags when dealing with FTX and Alameda Research.
Hot Take: BlockFi’s attempt to block FTX and Three Arrows Capital from retrieving funds adds another layer of complexity to the ongoing legal battles in the crypto industry. It remains to be seen how the court will decide on the matter and how it will impact the creditors of all parties involved.
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