BlackRock’s Bitcoin ETF reaches top 0.2% of all ETFs so far this year
February 7, 2024
Crypto exchange Bitsonic executives jailed for $7.5M theft
February 7, 2024BlockFi and 3AC settlement deal gets judge’s go-ahead but remains sealed
A settlement resolving disputes between crypto lender BlockFi and defunct crypto hedge fund Three Arrows Capital (3AC) has received approval from a United States judge. The judge ordered that the details of the settlement remain sealed.
In a hearing on Feb. 6, New Jersey Bankruptcy Court Judge Michael Kaplan sanctioned the settlement between the companies to halt further legal battles. BlockFi asserted that 3AC owed it $129 million, while the hedge fund claimed BlockFi owed it $280 million.
Sealing of Settlement Agreement:
Judge Kaplan declined to unseal the settlement agreement, arguing that it would be counter-intuitive to do so. He rebutted objections to the seal, emphasizing the commercial sensitivity of the terms and their potential impact on litigation against bankrupt crypto exchange FTX.
The court granted BlockFi’s motion to seal, citing the need to protect settlement strategies and show respect for comity with 3AC’s foreign bankruptcy proceedings.
The approval of the settlement allows BlockFi to proceed with distributions from the lending estate to creditors, a crucial step for the company’s progress. This was a primary reason for seeking quick approval.
Background and Previous Proceedings:
In September 2023, Kaplan approved BlockFi’s amended Chapter 11 and customer repayment plan, clearing the path for liquidation. BlockFi owed substantial sums to numerous creditors, including $220 million to 3AC, among others.
Three Arrows Capital collapsed in June 2022, followed by BlockFi’s bankruptcy filing in November 2022 after FTX’s downfall. Additionally, in February, OPNX, a crypto bankruptcy claims platform launched by 3AC co-founders Su Zhu and Kyle Davies, announced its cessation of operations, closing down by Feb. 14.
