: In February 2024, a bankruptcy judge approved a sealed settlement between BlockFi and 3AC liquidators, ending years of dueling claims.
: BlockFi accused 3AC of using fraudulent conduct to secure its loans, which 3AC's liquidators contested in court.
: Before settling, 3AC liquidators claimed BlockFi owed them $280 million , while BlockFi asserted it was owed $129 million by the defunct hedge fund.
: Reports indicated the liquidation totaled at least $400 million .
BlockFi's involvement in liquidating Three Arrows Capital (3AC) was a proactive risk management move to mitigate losses from the hedge fund's massive defaults . As one of the first lenders to act, BlockFi fully liquidated or hedged all collateral associated with its loans to 3AC. Key Aspects of the Liquidation
: BlockFi claimed to be among the first to take action , which helped it recover funds before other lenders. Legal and Financial Aftermath
: BlockFi CEO Zac Prince confirmed the company "fully accelerated the loan" and liquidated all associated collateral to protect its balance sheet.