BlockFi has filed a motion to block attempts by FTX and 3AC to retrieve funds via bankruptcy court, arguing that BlockFi customers should be compensated first.
- The crypto bankruptcy wars are heating up as BlockFi has filed a motion to block attempts by FTX and Three Arrows Capital to retrieve hundreds of millions of dollars to pay back their creditors, arguing that BlockFi customers should be compensated first.
“Now FTX seeks to recover on over $5 billion of claims filed against the BlockFi estates at the direct expense of the ultimate victims of FTX’s fraud: BlockFi’s clients and other legitimate creditors,” they added. “To prevent further injustice to the creditors of BlockFi’s estates, the Court should disallow the FTX Claims under the doctrine of unclean hands.”
“The parties viewed this as an equity-purchase transaction, rather than an unsecured loan,” the filing said. “FTX funded $275 million of its $400 million purchase price but failed to fund the remainder before it filed bankruptcy. The $275 million represents a partial purchase price or capital contribution, which is non-refundable and BlockFi is not liable to repay.”
They argued that the one outcome that “was not reasonably foreseeable was the loan remaining, accruing interests for a five-year period, and then being repaid – because this was an equity investment.” The doctrine of equitable subordination is an equitable power that a bankruptcy court may employ to rearrange the priorities of creditors’ interests and to place all or part of a wrongdoer’s claim in an inferior status.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
BlockFi Fights FTX, Three Arrows Over Potential RepaymentsBankrupt crypto lender BlockFi Inc. wants to block attempts by FTX and Three Arrows Capital to get back billions of dollars exchanged between the firms before all three companies unraveled last year.
Read more »
Jailed FTX founder Sam Bankman-Fried to return to court to enter new pleaSam Bankman-Fried is expected to plead not guilty to a new indictment alleging fraud and conspiracy charges
Read more »
Latest on SBF vs US DoJ: Jury instructions for October trial gets filedFTX founder
Read more »
Bankman-Fried Pleads Not Guilty Again to Narrower FTX Fraud IndictmentSam Bankman-Fried again pleaded not guilty in his federal fraud case over last year’s implosion of the FTX cryptocurrency exchange, this time to a narrower slate of charges.
Read more »
Reconsider Dundas Street renaming, three former Toronto mayors tell Chow, councilTORONTO — Three former Toronto mayors are asking the city to reconsider its decision to rename Dundas Street, questioning the practicality of the move and the research supporting it.
Read more »
Cyprus rescues 115 Syrian migrants aboard 3 separate boats over the last three daysCyprus police on Monday rescued 18 Syrian migrants after their boat started taking on water some 3.5 miles off the Mediterranean island nation's southeastern coast.
Read more »