{"id":23054,"date":"2023-08-23T10:42:12","date_gmt":"2023-08-23T10:42:12","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/blockfi-challenges-ftx-and-three-arrows-capitals-5-billion-recovery-claims\/"},"modified":"2023-08-23T10:42:12","modified_gmt":"2023-08-23T10:42:12","slug":"blockfi-challenges-ftx-and-three-arrows-capitals-5-billion-recovery-claims","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/blockfi-challenges-ftx-and-three-arrows-capitals-5-billion-recovery-claims\/","title":{"rendered":"BlockFi challenges FTX and Three Arrows Capital&#8217;s $5 billion recovery claims"},"content":{"rendered":"<p><b>(Originally posted on : CoinJournal: Latest Bitcoin, Ethereum &amp; Crypto News )<\/b><br \/>\n<\/p>\n<div>\n<div class=\"post-article-image  -mt-24  mb-8  lg:-mt-32  rounded  overflow-hidden\">\n<picture><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2023\/08\/1692786221761-36c50e7a-60dd-4a59-8af3-1fd6278a2e8d-smartcrop-750x375.webp\" type=\"image\/webp\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2023\/08\/1692786221761-36c50e7a-60dd-4a59-8af3-1fd6278a2e8d-smartcrop-363x181.webp\" type=\"image\/webp\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2023\/08\/1692786221761-36c50e7a-60dd-4a59-8af3-1fd6278a2e8d-smartcrop-750x375.jpg\" type=\"image\/jpeg\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2023\/08\/1692786221761-36c50e7a-60dd-4a59-8af3-1fd6278a2e8d-smartcrop-363x181.jpg\" type=\"image\/jpeg\"\/>\n<\/picture>                    <\/div>\n<ul>\n<li>FTX is attempting to collect funds that BlockFi withdrew from FTX.com and others paid as interest by Alameda.<\/li>\n<li>BlockFi has however described FTX\u2019s investment as a \u201cgamble\u201d that BlockFi creditors shouldn\u2019t be held responsible for.<\/li>\n<li>Three Arrows Capital argue that BlockFi\u2019s efforts to block their claims may violate the previously granted bankruptcy pause.<\/li>\n<\/ul>\n<p><a href=\"https:\/\/coinjournal.net\/news\/blockfi-is-bankrupt-where-did-it-all-go-wrong\/\">Bankrupt crypto lender BlockFi<\/a> is attempting to thwart attempts by FTX and Three Arrows Capital (3AC) to collect billions of dollars exchanged between the companies before their demise last year. In a court filing made on Monday, BlockFi asserted that FTX and Three Arrows Capital are not entitled to the $5 billion they are requesting. BlockFi is accusing the two companies of victimising it.<\/p>\n<p>In the filing, BlockFi wrote that the doctrine of \u201cunclean hands\u201d should be applied in order to prevent future unfairness to the creditors of BlockFi\u2019s estates.<\/p>\n<h2>Effect on repayment to creditors<\/h2>\n<p>The ongoing tussle might have a substantial impact on how much is paid back to each creditor in the individual bankruptcy cases of BlockFi, FTX, and Three Arrows.<\/p>\n<p>BlockFi, which is already in the liquidation process, has raised concerns that the legal battles with FTX, Three Arrows, and other crypto companies may have a $1 billion negative influence on the repayment of its clients.<\/p>\n<h2>FTX claims<\/h2>\n<p>In its defence, FTX has stated that its main goal is to recoup <a href=\"https:\/\/coinjournal.net\/news\/sam-bankman-fried-commits-250m-to-blockfi-read-the-details-here\/\">loan repayments and collateral<\/a> that were given to BlockFi prior to the company\u2019s bankruptcy filing in November 2022.<\/p>\n<p>Along with other preferential payments, FTX is attempting to collect the $90 million that BlockFi withdrew from FTX.com and the $400 million that its trading company, Alameda Research, paid back in loan interest.<\/p>\n<p>However, the $400 million, according to BlockFi, wasn\u2019t covered by a typical loan arrangement. Instead, BlockFi claimed it was an unsecured, 5-year term with interest rates far lower than the market average, and repayments weren\u2019t required until the company would presumably mature.<\/p>\n<p>The investment by FTX was described by BlockFi as a \u201cgamble\u201d that BlockFi creditors shouldn\u2019t be held responsible for.<\/p>\n<h2>Three Arrows Capital claims<\/h2>\n<p>As one of the main creditors, Three Arrows has also asserted that BlockFi owes them more than $220 million through the liquidators acting on their behalf.<\/p>\n<p>Under bankruptcy law, businesses have the right to reverse transactions that favoured some creditors over others in the months leading to filing for Chapter 11.<\/p>\n<div class=\"post-meta\">\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Share this article<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Categories<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Tags<\/h6>\n<\/p><\/div>\n<\/p><\/div>\n<p><a href=\"https:\/\/coinjournal.net\/news\/blockfi-challenges-ftx-and-three-arrows-capitals-5-billion-recovery-claims\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : CoinJournal: Latest Bitcoin, Ethereum &amp; Crypto News ) FTX is attempting to collect funds that BlockFi withdrew from FTX.com and others paid as interest by Alameda. BlockFi has however described FTX\u2019s investment as a \u201cgamble\u201d that BlockFi creditors shouldn\u2019t be held responsible for. Three Arrows Capital argue that BlockFi\u2019s efforts to [&hellip;]<\/p>\n","protected":false},"author":7,"featured_media":23055,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/23054"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=23054"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/23054\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/23055"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=23054"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=23054"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=23054"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}