фото показано с : invezz.com

In a pivotal development for BlockFi and Three Arrows Capital (3AC), a United States judge, Michael Kaplan, in a court hearing on Tuesday provided the legal nod to a settlement that puts an end to the financial disputes between the crypto lender and the defunct crypto hedge fund.

BlockFi had asserted a claim of $129 million owed by 3AC, while the hedge fund 3AC countered with a demand for $280 million from BlockFi. The approved settlement marks a crucial milestone, effectively preventing any further legal wrangling between the two parties.

The settlement between BlockFi and 3AC follows another agreement between 3AC and Genesis, where bankrupt crypto lender Genesis agreed to settle $1 billion in claims by 3AC.

Despite the approval, the details of the settlement have been deliberately kept under wraps. BlockFi filed a motion to seal the details of the settlement in January and successfully argued that the terms contain commercially sensitive information, potentially impacting litigation tied to the bankruptcy of crypto exchange FTX. Judge Kaplan rejected objections to unsealing the agreement, emphasizing the counter-intuitive nature of disclosing such sensitive terms.

The decision to maintain confidentiality extends beyond protecting the interests of BlockFi and 3AC. The court’s rationale includes safeguarding the strategies involved in settling and showing respect for the foreign bankruptcy proceedings of 3AC.

With the green light for the sealed settlement, BlockFi can now proceed with the distribution of assets from its lending estate to creditors, a significant step in meeting its financial obligations.

BlockFi’s journey through the legal maze began with its Chapter 11 bankruptcy filing in November 2022, a fallout from the collapse of the crypto exchange FTX. Afterwards, the company’s amended Chapter 11 and customer repayment plan gained approval in September 2023, signalling progress towards liquidation.

At that time, estimates pointed to BlockFi’s substantial debts, potentially reaching up to $10 billion, distributed among more than 100,000 creditors. Among these, 3AC emerged as a notable creditor, claiming $220 million from BlockFi.

While BlockFi’s path to financial resolution took shape, 3AC faced its own challenges with liquidators seeking to recover $1.3 billion from the co-founders Su Zhu and Kyle Davies. Su Zhu was in September 2023 arrested and detained in Singapore. In addition, OPNX, a crypto exchange set up by the founders of Three Arrows Capital, announced that it will shut down this month adding a layer of intrigue to the whole 3AC saga.

The post Judge approves sealed settlement between BlockFi and 3AC appeared first on Invezz

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