Crypto news: the judicial agreement between BlockFi and 3AC has received the judge’s approval, however, the details remain confidential.
BlockFi has justified this confidentiality by stating that the sensitive information contained in the agreement could have negative repercussions on any future legal disputes of the company.
Let’s see below all the details.
Summary
The agreement between BlockFi and 3AC: what impact will it have on the crypto world?
As anticipated, a US bankruptcy court yesterday approved the agreement between BlockFi, the crypto lending company, and Three Arrows Capital (3AC), a cryptocurrency hedge fund.
Despite this, the details of the agreement remain confidential. The approval effectively resolved the counterclaims.
During Tuesday’s hearing, Judge Kaplan of the New Jersey bankruptcy court declared that requesting the disclosure of the agreement details would be counterintuitive.
Last week, the US trustee had asked the judge to make the details public, arguing that there were not sufficient justifications to keep such information confidential.
However, BlockFi had filed a motion to seal the details in January, arguing that they contained “sensitive and non-public” information that could have negative impacts on future litigation.
We remind you that BlockFi declared bankruptcy under Chapter 11 in November 2022 following the collapse of FTX. In September 2023, the bankruptcy court approved BlockFi’s Chapter 11 plan for the repayment of its 10,000 creditors.
In October, the company announced that it had emerged from bankruptcy and had started repaying its creditors.
BlockFi starts customer distribution phase
BlockFi has recently announced the start of the next phase of distributions, aiming to provide further assistance to its clients.
The return of cryptocurrencies from the Wallet product, successfully completed on January 22, 2024, marks a significant milestone in resolving customer complaints.
In a crucial turn of events, the United States Bankruptcy Court for the District of New Jersey granted the necessary relief on January 17, 2024, allowing BlockFi to initiate provisional distributions.
Starting from February, customers will be able to request withdrawals through BlockFi for the remaining products, including the BlockFi Interest Account (BIA), loans, and private services.
Applicants must have accepted requests to benefit from the distribution. Additionally, those awaiting reconciliation and approval will become eligible once their request has been successfully resolved.
BlockFi expects this first wave of distributions to return between 20% and 40% of the requests allowed by eligible customers.
The company remains optimistic about further recoveries from the FTX asset, which will be used as a source for additional distributions to customers. The BlockFi withdrawal process will be managed in batches, with detailed instructions sent via email to eligible customers.
This development follows a precedent established in the case of FTX insolvency, where clients and creditors with verifiable losses were guaranteed a full refund.
BlockFi’s commitment to returning assets in kind and the favorable court decisions reflect a positive trend in ensuring the financial stability of stakeholders in the cryptocurrency sector.
The closure of OPNX, the crypto exchange founded by 3AC
The cryptocurrency exchange Open Exchange (OPNX), created by the founders of the former hedge fund Three Arrows Capital (3AC), announces its imminent closure, just one year after its launch.
In an email shared on the social media platform X, OPNX informs users about the official cessation of operations and the planned closure in February.
Users are invited to adjust their positions by February 7th, download historical data, and withdraw funds by February 14th.
OPNX guarantees an orderly closure, with open positions that will be automatically settled after February 7th and the disabling of the withdrawal feature by February 14th.
The founders of 3AC, Su Zhu and Kyle Davies, had launched OPNX with the ambitious goal of becoming the first crypto exchange to support the trading of bankruptcy claims.
This is in response to the creditors of failed cryptocurrency companies such as FTX, Voyager, Celsius, Genesis, BlockFi, Mt. Gox, and 3AC, who are looking for alternative solutions.
We remind you that Three Arrows Capital, with assets over 10 billion dollars, had declared bankruptcy during the bearish cryptocurrency market.
On the OPNX website you can read the following:
“We believe that founders who achieve great milestones and then fail learn the most important lessons and, therefore, have the most to contribute. Our responsibility is to use the wisdom gained to build a more solid, open, and transparent financial world for everyone.”
