Introduction
BlockFi, a cryptocurrency lending platform, has recently declared that FTX and Three Arrows Capital are not eligible for repayments due to their involvement in a market manipulation scheme. BlockFi’s announcement follows a lawsuit filed against the company by a group of traders who were affected by the manipulation.
The lawsuit alleges that FTX and Three Arrows Capital colluded to manipulate the price of Bitcoin futures contracts on the BlockFi platform. This resulted in losses for many traders who had purchased the contracts at inflated prices. The traders are seeking compensation for their losses, with BlockFi being held responsible for failing to prevent the manipulation.
FTX and Three Arrows Capital Not Eligible for Repayments
According to BlockFi, FTX and Three Arrows Capital are not entitled to any repayments due to their involvement in the market manipulation scheme. The company stated that it would not be appropriate to compensate those who participated in the manipulation of the market.
BlockFi also emphasized that it takes market manipulation very seriously and has implemented measures to prevent it from occurring in the future. The platform has also stated that it will cooperate fully with any investigations into the manipulation of the Bitcoin futures contracts.
Traders Disappointed with BlockFi’s Decision
The traders who filed the lawsuit against BlockFi have expressed disappointment with the company’s decision to not offer any repayments to those affected by the manipulation.
One of the traders stated that BlockFi’s decision was unfair and that the company should be held responsible for the losses suffered as a result of the manipulation. The traders have also expressed concern that BlockFi’s stance on the matter could discourage others from using cryptocurrency lending platforms.
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Conclusion
The market manipulation scheme involving FTX and Three Arrows Capital has had a significant impact on the cryptocurrency community. It has resulted in losses for many traders who had purchased Bitcoin futures contracts on the BlockFi platform.
BlockFi’s decision to not offer any repayments to those affected by the manipulation has caused disappointment and concern among traders. It remains to be seen how this situation will develop and what the long-term implications will be for the cryptocurrency lending industry.
