BlockFi Fights FTX, Three Arrows Over Potential Repayments
- The lender says it was victim of fraud by FTX and Three Arrows
- Litigation could affect payouts by $1 billion: BlockFi
BlockFi, which is liquidating, has said litigation with FTX, Three Arrows and a few other crypto firms could affect the amount its customers are repaid by $1 billion.
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Bankrupt crypto lender BlockFi Inc. wants to block attempts by FTX and Three Arrows Capital to get back billions of dollars exchanged between the firms before all three companies unraveled last year.
BlockFi said in a Monday court filing that it was victimized by Sam Bankman-Fried’s platform and, as a result, failed crypto exchange FTX isn’t entitled to more than $5 billion being sought. Similarly, BlockFi accused the collapsed crypto hedge fund Three Arrows of using fraud to borrow money from the lender and isn’t entitled to potential repayment.