Judge Approves Settlement of Counterclaims Between Three Arrows Capital and BlockFi
A judge has given the green light to a settlement agreement between bankrupt crypto hedge fund Three Arrows Capital (3AC) and defunct crypto lender BlockFi. However, the specifics of the settlement remain confidential.
Debts and Legal Battle
The dispute between the two firms revolved around significant debts. BlockFi claimed that 3AC owed them $129 million, while 3AC countered with claims that BlockFi owed them $280 million. This legal battle was part of the wider financial turmoil in the cryptocurrency industry.
BlockFi’s Bankruptcy
In November 2022, BlockFi filed for Chapter 11 bankruptcy protection due to its exposure to the collapsed crypto exchange FTX. The company had frozen cryptocurrencies worth $355 million on FTX and had a defaulted loan of $671 million to Alameda Research, associated with FTX.
Resolution and Liquidation
In October, BlockFi successfully emerged from bankruptcy after a year of restructuring. On the other hand, 3AC was ordered to liquidate in mid-2022 following the decline of cryptocurrencies Luna and TerraUSD. The firm filed for bankruptcy in the British Virgin Islands due to its inability to meet financial obligations.
Co-Founders’ Journey
The co-founders of 3AC, Kyle Davies and Su Zhu, have faced legal troubles, launched and closed a debt claim trading platform, and are now focusing on a derivatives trading project called OX.fun.
Hot Take: Settlement Reached in Bankruptcy Case Between Three Arrows Capital and BlockFi
A judge has approved a settlement agreement between bankrupt hedge fund Three Arrows Capital and defunct lender BlockFi, marking a significant development in the cryptocurrency industry’s ongoing financial turmoil. The details of the settlement remain undisclosed, leaving the public curious about the outcome of this legal battle surrounding substantial debts. BlockFi’s bankruptcy filing was driven by its exposure to the collapsed crypto exchange FTX, highlighting the interconnectedness and risks within the crypto ecosystem. Meanwhile, 3AC faced liquidation after failing to meet financial obligations and declared bankruptcy in the British Virgin Islands. The co-founders’ journey reflects the challenges and shifting landscape of the crypto industry.
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