Connect with us

Hi, what are you looking for?

Economy

US Judge Approves Sealed Settlement Between BlockFi and Three Arrows Capital

A United States judge has given approval to a sealed settlement that resolves the claims and disputes between crypto lender BlockFi and defunct crypto hedge fund Three Arrows Capital (3AC).

Judge Michael Kaplan approved the settlement during a hearing on February 6th in the New Jersey Bankruptcy Court, but ordered that the details of the settlement remain undisclosed.

The approval of the settlement aims to put an end to the ongoing legal battles between the two companies.

BlockFi had claimed that 3AC owed them $129 million, while the hedge fund argued that BlockFi owed them $280 million.

Judge Says Unsealing Would be Counter-Intuitive


Although the settlement agreement remains sealed, Judge Kaplan defended the decision, stating that unsealing the details would be counter-intuitive.

The judge also rejected the objection raised by the U.S. Trustee, which argued for the disclosure of the terms.

BlockFi had filed a motion to seal certain information, citing its commercial sensitivity and potential impact on the litigation involving bankrupt crypto exchange FTX.

The court granted BlockFi’s motion to seal, emphasizing the importance of protecting settlement strategies and respecting the foreign bankruptcy proceeding of 3AC.

Judge greenlights sealed settlement between #BlockFi and #3AC, resolving the claims and disputes between the crypto lender and the defunct hedge fund.

— Moby Media (@mobymedia) February 7, 2024

With the settlement now approved, BlockFi can proceed with the distribution of assets from the lending estate to its creditors, a crucial step that prompted the company to seek swift approval.

Judge Kaplan had previously approved BlockFi’s amended Chapter 11 and customer repayment plan in September 2023 when the company received clearance for liquidation.

At that time, it was estimated that BlockFi owed over $10 billion to more than 100,000 creditors, including $1 billion to its three largest creditors and $220 million to 3AC.

Three Arrows Capital collapsed in June 2022, while BlockFi filed for bankruptcy in November 2022 following the downfall of FTX.

3AC Co-Founder Arrested on Flee Attempt


In October last year, Su Zhu, the co-founder Three Arrows Capital (3AC), was arrested in Singapore while attempting to flee.

According to a disclosure made by Teneo, the fund’s liquidator, Zhu was detained at the Changi airport after a committal order was issued on him and his business partner, Kyle Davies.

“(Zhu) was apprehended at Changi Airport whilst attempting to travel out of Singapore following a committal order granted by the Singapore Courts against him,” the announcement read.

Zhu and his business partner, Kyle Davies, were sentenced to four months in prison through a committal order for contempt of court. 

The former Three Arrow executives were issued subpoenas to cooperate with the investigations and activities of Teneo in unraveling issues that led to the implosion of the fund.

Although active on social media in the aftermath of the collapse, Zhu and Davies remain on the run from the firm’s liquidators and authorities.

Both were also prohibited by the Monetary Authority of Singapore from floating regulated investments for nine years.

The post US Judge Approves Sealed Settlement Between BlockFi and Three Arrows Capital appeared first on Cryptonews.

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Economy

The Pepe (PEPE) price pumped up 30% on Monday, with investors flooding back into the meme coin amid a surge in risk-taking activity across...

Economy

OTC crypto crime appears to be on the rise in South Korea, where police say they have arrested a “multinational gang” who allegedly locked...

Economy

The newly launched nine Bitcoin exchange-traded funds (ETFs) in the U.S. have broken an all-time daily record in volume, taking in $2.4 billion which...

Economy

The price of the leading cryptocurrency Bitcoin rallied over 10% to soar above $57,000 for the first time since November 2021. The price rally...

Economy

The U.S. Republican senators have introduced a bill aiming to ban Federal Reserve-backed central bank digital currency (CBDC). As reported by The Hill, this...

Economy

The Financial Stability Board (FSB) will deliver reports on asset tokenization and AI later in 2024, according to Chair Klaas Knot. FSB Chair @KlaasKnot...

You May Also Like

Financial Advisors

[#item_full_content]

Financial Advisors

[#item_full_content]

Financial Advisors

The humongous outbreak of the dreaded coronavirus has brought about a groundbreaking change in what the world perceived as ‘normal’. With an estimated 280,391,189...

Disclaimer: Respect Investment.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2024 Respect Investment. All Rights Reserved.