BlockFi, a bankrupt cryptocurrency lender, is opposing attempts by FTX and Three Arrows Capital (3AC) to retrieve hundreds of millions of dollars to pay back their creditors. BlockFi claims that its own creditors should not be pushed to the back of the line because FTX's creditors were allegedly harmed by the exchange misappropriating $5 billion BlockFi lent it.

Zhu Su, the founder of Three Arrows Capital, posted a statement from a former director of Three Arrows Capital Ltd on social media: "We understand that DeFiance Capital (DC) and Starry Night Capital (SNC) funds have always been managed separately in other funds of Three Arrows Capital Ltd (TACL).

The Block reported that the economic dispute case of 140 million US dollars between DeFiance Capital and Teneo, the liquidator of Three Arrows Capital, will be brought to court in Singapore. Court documents show that the liquidator believes that these funds should be considered as part of Three Arrows Capital's assets and distributed to creditors, while DeFiance Capital claims that these funds should be handled separately and returned to its own investors.

Kyle Davies, co-founder of collapsed crypto hedge fund Three Arrows Capital, has claimed that he renounced his American citizenship and therefore does not need to answer to US courts. In court documents filed on Tuesday, Davies said he became a permanent resident of Singapore in 2017 and renounced his American citizenship when he got married, as Singapore doesn’t allow dual citizenship.

Kyle Davies, co-founder of collapsed crypto hedge fund Three Arrows Capital, has renounced his American citizenship and is claiming he does not need to answer to US courts. Davies became a permanent resident of Singapore in 2017 and renounced his American citizenship when he got married, as Singapore does not allow dual citizenship. Three Arrows Capital went bankrupt last year after investing client money in new crypto ventures, including the collapsed crypto project Terra. The liquidators of Three Arrows Capital have demanded $1.3 billion from Davies and fellow co-founder Su Zhu, claiming they continued taking on leverage despite the firm being insolvent.

The liquidator of Three Arrows Capital (3AC) is exploring the possibility of reclaiming around $1.2 billion from Digital Currency Group (DCG) and BlockFi by seeking repayment of payments made by the hedge fund before the liquidation process. The liquidator's confidential report indicates that over $1 billion in potential claims are being considered against DCG and its Genesis lending subsidiary, along with an additional $220 million in preferential payments made to BlockFi.

FTX has filed a legal document claiming that proposals made by BlockFi, a defunct crypto lender, are an abuse of bankruptcy rules. The proposals, which will be discussed in a New Jersey court hearing on July 13, have also been opposed by Three Arrows Capital and the Securities and Exchange Commission. FTX claims that its claims against BlockFi have been unfairly downgraded by the proposed plan. The filings are part of an attempt to unravel complex financial transactions among crypto companies that are now undergoing separate bankruptcy cases.

July 4 (Cointime) - Two founders of the bankrupt crypto hedge fund Three Arrows Capital (3AC) have announced that they will donate "future earnings" to creditors who lost money after the fund's collapse last year.

June 27 (Cointime) - Liquidators say founders incurred debt when firm was insolventLosses are part of $3 billion owed to Three Arrows’ creditorsThree Arrows Capital liquidators are seeking to recover $1.3 billion from the co-founders of the failed crypto hedge fund, an amount that reflects losses the founders are accused of racking-up in the months before the firm collapsed, according to a person familiar with the liquidators’ claims.

June 16 (Cointime) - Kyle Davies, co-founder of Three Arrows Capital (3AC), is facing civil sanctions for ignoring a subpoena related to bankruptcy proceedings, according to court filings from 3AC's creditor council.