According to Bloomberg's report, bankrupt cryptocurrency lending firm BlockFi Inc. is seeking to prevent FTX and Three Arrows Capital from attempting to reclaim billions of dollars in transactions between the companies before their respective collapses last year. In court filings on Monday, BlockFi stated that it is a victim of the FTX platform and thus FTX has no right to claim over $5 billion in recovery. Similarly, BlockFi alleges that the defunct Three Arrows Capital borrowed money from the lender through fraudulent means and is not entitled to repayment.
The filed documents on Monday further fuel an ongoing legal battle that could impact how much creditors of BlockFi, FTX, and Three Arrows Capital receive in their respective bankruptcy proceedings. BlockFi asserts that litigation with FTX, Three Arrows Capital, and several other cryptocurrency companies could affect the $1 billion amount its customers are owed. Previously, BlockFi's creditors had accused management of disregarding warning signs before extending loans to FTX, but a settlement was reached with the company last month, advancing a debt repayment plan.