Settlement Approved in BlockFi and Three Arrows Capital Case
A US bankruptcy court has approved a settlement between crypto lending company BlockFi and collapsed hedge fund Three Arrows Capital (3AC). However, the specific terms of the settlement remain confidential. The approval effectively resolves any counterclaims between the two parties. Judge Kaplan of the New Jersey Bankruptcy Court stated that it doesn’t make sense to demand disclosure of settlement details.
Judge Urged to Reveal Settlement Details
The US Trustee previously urged the judge to reveal the details of the settlement, arguing that BlockFi had not provided sufficient reasons to keep the information undisclosed. In January, BlockFi had requested to seal the information, citing its sensitive nature and potential negative impact on future legal proceedings.
BlockFi’s Chapter 11 Bankruptcy Protection
In November 2022, BlockFi sought Chapter 11 bankruptcy protection due to its significant ties to the failed crypto exchange FTX. The company’s financial troubles were worsened by FTX’s own bankruptcy filing. BlockFi’s Chapter 11 plan received approval from the bankruptcy court in September 2023, and in October, the company emerged from bankruptcy and began repaying its creditors.
Legal Dispute and Crypto Sector Challenges
BlockFi claimed that Three Arrows Capital owed them $129 million, while 3AC argued that BlockFi owed them $280 million. This legal dispute is just one example of the challenges faced by entities within the crypto sector, as many grapple with financial difficulties and legal disputes.
Hot Take: Confidential Settlement Reached Between BlockFi and Three Arrows Capital
A US bankruptcy court has approved a confidential settlement between BlockFi and Three Arrows Capital, resolving their counterclaims. The details of the settlement remain undisclosed, and the judge ruled against revealing them, stating it would not make sense to demand disclosure. BlockFi previously sought Chapter 11 bankruptcy protection due to its ties with failed crypto exchange FTX. This legal dispute highlights the challenges faced by entities in the crypto sector. While the specific terms of the settlement are unknown, it marks a significant step towards resolving the ongoing disagreement between BlockFi and Three Arrows Capital.
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