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.

BlockFi suggests that FTX's investment was a "gamble" that BlockFi creditors should not be liable for, and claims its litigation with FTX, 3AC, and other firms could cost it up to $1 billion, impacting the amount its creditors are owed. BlockFi owes up to $10 billion to over 100,000 creditors, including $1 billion to its three largest creditors and $220 million to bankrupt crypto hedge fund 3AC.