A US Bankruptcy Court has sanctioned a settlement between BlockFi, a cryptocurrency lending firm, and the defunct crypto hedge fund Three Arrows Capital (3AC), effectively ending the legal battle centered around the significant debt between the duo. 
As per a recent <a href="https://restructuring.ra.kroll.com/blockfi/Home-DownloadPDF?id1=MzA1NzgxOQ==&amp;id2=-1">court hearing</a>, Judge Michael Kaplan of the New Jersey Bankruptcy Court resolved the dispute with the settlement’s approval without disclosing the agreement’s specific terms.&nbsp; 
<h2 id="b-court-seals-details-of-the-settlement-b">Court Seals Details of the Settlement</h2> 
Markedly, the Court’s decision upholds BlockFi’s request to keep the details of the settlement confidential despite objections from the US Trustee to disclose the agreement. The judge noted that unveiling the details would be “counterintuitive.” 
In January, BlockFi requested to keep the settlement details confidential, asserting that the terms include commercially sensitive information that could affect legal proceedings related to the FTX crypto exchange’s bankruptcy. On the other hand, the US Trustee had filed an objection because Blockfi had insufficient justification to keep such information sealed. 
BlockFi claimed that 3AC owed them $129 million, but 3AC countered, asserting that BlockFi was indebted to them for $280 million. 
<h2 id="b-blockfi-to-begin-creditor-s-repayments-b">BlockFi to Begin Creditor’s Repayments</h2> 
Following the Court’s approval BlockFi can now move forward with disbursing funds from its lending estate to creditors, signifying a noteworthy progression and emphasizing the pressing nature of the company’s plea for swift approval.&nbsp; Customers can now anticipate the restitution of their assets as the platform moves forward with its approved reorganization plan. 
Earlier in October 2023, <a href="https://thecoinrise.com/blockfi-shares-withdrawal-plans-after-emergence-from-bankruptcy/">BlockFi shared a plan to reclaim assets and loans owed to it by beleaguered firms like FTX, and 3AC.</a> The lender also planned to redistribute reclaimed assets to its creditors underscoring its commitment to resolving the challenges it faced during its bankruptcy period. 
<h2 id="b-3ac-remains-neck-deep-in-bankruptcy-b">3AC Remains Neck-Deep in Bankruptcy</h2> 
Noteworthy, 3AC filed for Chapter 15 bankruptcy in July 2022, and unlike its counterpart BlockFi which has been able to round off its bankruptcy proceedings, the crypto hedge fund is still grappling with settling creditors amongst other challenges. 
Meanwhile, Zhu Su and Kyle Davies, <a href="https://www.binance.com/en-AU/feed/post/1143225">co-founders of 3AC have been banned by the Monetary Authority of Singapore (MAS)</a>. Per the sanction, they can no longer be involved in regulated business activities in Singapore for the next nine years. This also means that <a href="https://thecoinrise.com/3ac-founders-davies-and-su-subpoenaed-on-twitter/">they are prohibited from holding managerial positions.</a> 
The post <a href="https://thecoinrise.com/us-court-sanctions-blockfi-and-three-arrows-capital-settlement-deal/">US Court Sanctions BlockFi and Three Arrows Capital Settlement Deal</a> appeared first on <a href="https://thecoinrise.com">Latest News and Insights on Blockchain, Cryptocurrency, and Investing</a>.

US Court Sanctions BlockFi and Three Arrows Capital Settlement Deal

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