Judge approves BlockFi and 3AC settlement deal but details remain confidential
Quick Take
- Settlement information contains “sensitive” information that could negatively impact BlockFi’s future litigations, the firm argued in a filing.
A U.S. Bankruptcy Court approved on Tuesday a settlement between crypto lending firm BlockFi and collapsed crypto hedge fund Three Arrows Capital, with the settlement details remaining sealed.
The approval effectively settled counterclaims. “It’s counterintuitive to require the disclosure of settlement details,” said Judge Kaplan of the New Jersey Bankruptcy Court during the Tuesday hearing.
On Monday, the U.S. Trustee requested that the judge unseal the details, arguing there were insufficient justifications for the debtors to keep such information undisclosed. BlockFi filed a motion to seal the information in January, saying it contains “sensitive, non-public” information that could negatively impact its future litigations.
BlockFi filed for Chapter 11 bankruptcy in November 2022 following FTX’s collapse. In September 2023, the bankruptcy court approved BlockFi’s Chapter 11 plan to pay back its 10,000 creditors. In October, the firm said it emerged from bankruptcy and started repaying creditors.
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