Summary
Crypto lending firm BlockFi and collapsed crypto hedge fund Three Arrows Capital have reached a settlement, approved by a U.S. Bankruptcy Court. The details of the settlement remain sealed, with BlockFi arguing that the information is sensitive and could impact future litigation. BlockFi filed for Chapter 11 bankruptcy in November 2022 and emerged from bankruptcy in October 2023.
Key Points
1. A U.S. Bankruptcy Court approved a settlement between crypto lending firm BlockFi and collapsed crypto hedge fund Three Arrows Capital. The details of the settlement remain sealed.
2. The approval of the settlement effectively settled counterclaims. Judge Kaplan of the New Jersey Bankruptcy Court stated that requiring the disclosure of settlement details is counterintuitive.
3. The U.S. Trustee requested the judge to unseal the settlement details, arguing that there were insufficient justifications for keeping the information undisclosed. BlockFi had previously filed a motion to seal the information, citing its sensitivity and potential negative impact on future litigations.