Three Arrows Capital Liquidator May Try to Claw Back About $1.2B From DCG, BlockFi

The liquidator of Three Arrows Capital (3AC) whitethorn effort to reclaim astir $1.2 cardinal from Digital Currency Group (DCG) and crypto lender BlockFi, clawing backmost payments made by the hedge money arsenic liquidation loomed but earlier the process started.

A confidential July 7 study from Teneo, the liquidator, that CoinDesk reviewed referred to much than $1 cardinal of “prospective claims” against DCG and its Genesis lending subsidiary consisting of “both penchant claims and claims which person resulted from issues astir the perfection of indebtedness and information documentation.” It besides noted much than $220 cardinal of “preferential payments” to BlockFi.

Teneo declined to remark connected immoderate plans to claw backmost funds. DCG and BlockFi did not instrumentality requests for comment. DCG, an capitalist successful crypto companies, is the genitor institution of CoinDesk.

Preference claims travel into play if the hedge money was alert it was making payments that enactment 1 oregon much creditors into a amended presumption than different creditors. In this case, they interest transactions made by 3AC during what's known arsenic the insolvency twilight portion pursuing the illness of the Terra Luna project earlier successful 2022.