Recent court rulings in favor of Three Arrows Capital and against Bancor DAO draw significant attention in the crypto community. Let's delve into the details.
Court Ruling in Favor of Three Arrows Capital
A US bankruptcy court authorized the liquidators of defunct hedge fund Three Arrows Capital (3AC) to increase their claim against collapsed exchange FTX from $120 million to $1.53 billion. The ruling was issued on March 13 by Judge John Dorsey in Delaware, who dismissed arguments from FTX’s debtors regarding the untimeliness of the claim. The court found that 3AC liquidators had valid grounds for their claim and that FTX failed to provide necessary data on time. Liquidators stated FTX held $1.53 billion of hedge fund assets liquidated in 2022. The court ruled that the amendment of the claim was justified.
Texas Court Ruling Against Bancor DAO
A Texas federal judge issued a default judgment against Bancor DAO after the decentralized platform failed to respond to a court summons. Plaintiffs allege they lost millions due to Bancor not warning them of liquidity issues. They claim Bancor misled them about its impermanent loss protection (ILP) mechanism and that it functioned as an unregistered security. After suspending the ILP in June 2022, plaintiffs argue it wasn't properly disclosed to investors. Judge Robert Pitman confirmed the legitimacy of the claim against Bancor DAO.
Bitcoin Mining Dispute
A Delaware court issued a temporary restraining order in favor of Bitcoin miner Consensus Colocation and systems owner Stone Ridge Ventures. The decision came amid a payment dispute with hosting provider Mawson Hosting, blocking access to 21,000 mining rigs. The conflict centers around unpaid fees and contract terms. Consensus claims Mawson used the rigs for its benefit. The court barred Mawson from interfering until a preliminary injunction hearing.
These new legal precedents highlight the ongoing legal challenges within the cryptocurrency industry.
