BlockNews
FOLLOW ON X
  • BITCOIN
  • CRYPTO
    • ETHEREUM
    • RIPPLE XRP
    • SOLANA
    • CARDANO
    • BINANCE BNB
    • DOGECOIN
    • TRON
    • SUI
    • CHAINLINK
    • LITECOIN
  • FINANCE
  • POLITICS
  • MEMECOINS
  • NFT
  • OPINION
No Result
View All Result
BlockNews
  • BITCOIN
  • CRYPTO
    • ETHEREUM
    • RIPPLE XRP
    • SOLANA
    • CARDANO
    • BINANCE BNB
    • DOGECOIN
    • TRON
    • SUI
    • CHAINLINK
    • LITECOIN
  • FINANCE
  • POLITICS
  • MEMECOINS
  • NFT
  • OPINION
No Result
View All Result
BlockNews
Home BUSINESS

BlockFi is attempting to get out of paying its creditors, FTX and Three Arrows Capital

BlockNews Team by BlockNews Team
August 24, 2023
in BUSINESS, CRYPTO, FINANCE
Reading Time: 3 mins read
1
SHARES
21
VIEWS
Share on XShare in TelegramShare on Reddit
  • BlockFi is arguing that FTX is at fault for its collapse.
  • BlockFi continues to receive heat for doing business with FTX. 
  • FTX is accused of investing in BlockFi as a gamble by the bankrupt crypto lender in an argument about paying back the collapsed crypto giant. 

To avoid paying back its debts, BlockFi argues that its creditors are the victims of FTX’s fraud and collapse. 

The now bankrupt crypto lending firm is trying to block any attempts by bankrupt companies, Three Arrows Capital and FTX, to retrieve hundreds of millions of dollars they had with BlockFi to pay their debts.

In an August 21 filing, BlockFi argued to a New Jersey bankruptcy court that their creditors should not be pushed to the edge because FTX mismanaged the $5 billion it was borrowed by BlockFi. 

FTX is attempting to recover over $5 billion worth of claims filed against BlockFi’s estates at the direct expense of the ultimate victims of FTX’s fraud, which are BlockFi’s clients and other legitimate creditors.

To prevent further injustice to the creditors of BlockFi’s estates who have already been affected by FTX, BlockFi asked the court to disallow claims made by FTX under the doctrine of unclean hands.

FTX gave BlockFi $400 million in June 2022 after purchasing BlockFi’s equity according to a loan agreement. BlockFi is, however, arguing that the money from FTX was not a standard loan agreement, stating that it was an unsecured 5-year term well below market interest rates and shouldn’t be subjected to repayment so quickly as it wasn’t due until the firm was supposedly mature.

BlockFi added that FTX invested in it as a gamble, and its creditors do not owe the bankrupt firm liability for that as it was FTX’s fraudulent behaviors that caused the firm to collapse, so BlockFi’s creditors should not be expected to refund the purchase price.

Recent reports are showing that BlockFi owes up to $10 billion in debt to 100,000 plus creditors, including a $1 billion debt to their largest creditors and another $220 million to now bankrupt crypto hedge fund, Three Arrows Capital.

BlockFi accused Three Arrows Capital of making fraudulent moves with the borrowed money, hence debarring it from entitlements to a potential repayment. The lending firm is claiming that its litigation with FTX, Three Arrows Capital, and other firms could amount to $1 billion and would eventually impact the debt toward its creditors.

BlockFi has also received heat from its creditors, who have accused the bankrupt lending firm of ignoring the red flags surrounding FTX before choosing to transact with them and their trading firm, Alameda Research, in the months before the crypto giant’s collapse in November 2022.

Conclusion

However, BlockFi was able to reach a settlement with their creditors last month, opting for a repayment plan. BlockFi collapsed just two weeks after FTX filed for bankruptcy in November 2022.

Disclaimer: BlockNews provides independent reporting on crypto, blockchain, and digital finance. All content is for informational purposes only and does not constitute financial advice. Readers should do their own research before making investment decisions. Some articles may use AI tools to assist in drafting, but every piece is reviewed and edited by our editorial team of experienced crypto writers and analysts before publication.
Tags: BlockFiFTXThree Arrows Capital
TweetShareShare
BlockNews Team

BlockNews Team

DON'T MISS THESE! HOT OFF THE PRESS

Here is What Aave’s CEO Just Revealed About the Q4 2025 Upgrade
CRYPTO

Here is What Aave’s CEO Just Revealed About the Q4 2025 Upgrade

September 17, 2025
How to Go From Zero to Your First Profitable Trade in Crypto (2025)
BITCOIN

How to Go From Zero to Your First Profitable Trade in Crypto (2025)

September 17, 2025
What Happened in Crypto Today? – September 17: Fed Interest Rate Decision, Bullish DOGE and LINK News
CHAINLINK

What Happened in Crypto Today? – September 17: Fed Interest Rate Decision, Bullish DOGE and LINK News

September 17, 2025
Jerome Powell October Rate Decision Outlook: What to Expect and How it Will Effect You
FINANCE

Jerome Powell October Rate Decision Outlook: What to Expect and How it Will Effect You

September 17, 2025
What is Arbitrum? Why ARB is an Underpriced Crypto Gem Hiding in Plain Sight
CRYPTO

What is Arbitrum? Why ARB is an Underpriced Crypto Gem Hiding in Plain Sight

September 17, 2025
Here is Why Experts Predict a 40X Rally for Pepe Coin After $25M Whale Outflow
CRYPTO

Here is Why Experts Predict a 40X Rally for Pepe Coin After $25M Whale Outflow

September 17, 2025
Load More

Related News

Here is What Aave’s CEO Just Revealed About the Q4 2025 Upgrade

Here is What Aave’s CEO Just Revealed About the Q4 2025 Upgrade

September 17, 2025
How to Go From Zero to Your First Profitable Trade in Crypto (2025)

How to Go From Zero to Your First Profitable Trade in Crypto (2025)

September 17, 2025
What Happened in Crypto Today? – September 17: Fed Interest Rate Decision, Bullish DOGE and LINK News

What Happened in Crypto Today? – September 17: Fed Interest Rate Decision, Bullish DOGE and LINK News

September 17, 2025
Jerome Powell October Rate Decision Outlook: What to Expect and How it Will Effect You

Jerome Powell October Rate Decision Outlook: What to Expect and How it Will Effect You

September 17, 2025
What is Arbitrum? Why ARB is an Underpriced Crypto Gem Hiding in Plain Sight

What is Arbitrum? Why ARB is an Underpriced Crypto Gem Hiding in Plain Sight

September 17, 2025
Twitter Telegram Threads

BLOCKNEWS.COM

BlockNews is your premier source for real-time cryptocurrency, blockchain, political and financial market news.

Stay ahead of the herd with BlockNews

RESOURCES

  • About Us
  • Contact Us
  • Editorial Policies
  • Terms and Conditions
  • Privacy Policy
  • Sitemap

DISCLOSURES AND POLICIES

BlockNews provides independent reporting on crypto, blockchain, and digital finance. Content is for informational purposes only and does not constitute financial advice. Sponsored material is always disclosed. By using this site, you agree to our Terms and Conditions and Privacy Policy.

© 2025 BlockNews

No Result
View All Result
  • HOME
  • BITCOIN
  • CRYPTO
    • ETHEREUM
    • RIPPLE XRP
    • SOLANA
    • CARDANO
    • BINANCE BNB
    • DOGECOIN
    • TRON
    • LITECOIN
    • CHAINLINK
    • SUI
  • MEMECOINS
  • POLITICS
  • FINANCE
  • NFT
  • DEFI
  • GUIDES

© 2025 BlockNews