BlockFi battles FTX, 3AC in court over repayment claims
Bankrupt BlockFi is contesting efforts by the insolvent FTX and Three Arrows Capital (3AC) to recover millions of dollars owed to their creditors. In a filing to a New Jersey bankruptcy court on Aug. 21, BlockFi insisted that its creditors should not be disadvantaged because of the alleged misappropriation of $5 billion by FTX, which had borrowed the amount from BlockFi. The lender stated that FTX’s recovery claims of over $5 billion against BlockFi would be at the direct expense of BlockFi’s clients and other legitimate creditors. “To prevent further injustice to the creditors of BlockFi’s estates, the Court should disallow the FTX Claims under the doctrine of unclean hands,” BlockFi added. You might also like: US BlockFi clients free to withdraw funds after court order BlockFi also revealed that FTX had provided $400 million to the lender in June 2022 and bought BlockFi equity under a loan agreement. However, the lender contended that it w...