The founders of the hedge fund 3AC sued the co-founder of The Block
Date: 2023-06-24 Author: Karina Ziganova Categories: BUSINESS
The founders of the bankrupt hedge fund Three Arrows Capital filed a lawsuit on behalf of the OPNX exchange against the co-founder of the American crypto media
Cryptocurrency exchange for trading claims against bankrupt crypto firms OPNX (created by the founders of the collapsed hedge fund Three Arrows Capital, 3AC) has filed a lawsuit against the co-founder of the cryptocurrency media The Block, Mike Dudas. CoinDesk writes about this with reference to the lawsuit.
According to the details of the lawsuit, Dudas made defamatory comments about the exchange between February and March 2023. Then rumors about OPNX began to appear in the media for the first time. At the same time, it is unclear what kind of defamatory comments are in question.
Dudas's lawyers said that so far OPNX has not provided any actual evidence on the charges. To prove defamation, the exchange must demonstrate that Dudas's comments caused reputational damage to OPNX, Dudas's legal representative Stephen Paley said.
Recall that at the origins of OPNX are cryptocurrency entrepreneurs, whose business collapsed in 2022 due to dubious transactions as the bear market set in. The founders of Three Arrows Capital filed for bankruptcy using Chapter 15 of the U.S. Bankruptcy Code in the summer of 2022. At the same time, they ignored the court's requests for payments to the fund's creditors and decided to launch a new business - OPNX.
Derivatives exchange Deribit claims that the fund has still not repaid the $80 million debt on loans, interest and the negative value of its account assets. BlockFi and Genesis even eliminated 3AC positions after a margin call warning. According to media estimates, the fund owes its creditors over $3.5 billion.
