According to a Wednesday filing by FTX with more than a billion dollars in disputed transactions on the line, BlockFi’s proposals are an abuse bankruptcy rules.

BlockFi’s plans were opposed by the liquidated hedge fund Three Arrows Capital and federal regulator Securities and Exchange Commission.

FTX says that the proposed plan unfairly reduces its claims against BlockFi, the lender who was in trouble last year. FTX filed for bankruptcy itself in November.

FTX stated that “BlockFi Debtors believed some bankruptcy wand could be waived in order to make the FTX Debtors claims disappear… without meeting basic procedural fairness or due process requirements.” This was in a wind-up proposal filed in June. This is an abuse of the plan-process.

FTX cites hundreds and millions of dollars in repayments and collateral tied to a loan from FTX’s trading arm Alameda Research. Emergent Fidelity is a company created by FTX Chief Sam Bankman-Fried in order to hold shares of Robinhood (HOOD).

The filings attempt to unravel complicated financial transactions between crypto companies that are currently undergoing separate bankruptcy proceedings as they try to repay their customers and other creditor. BlockFi could also be claiming against FTX through parallel proceedings in Delaware. FTX’s attorneys “expect” to object, according to the filing.

Three Arrows Capital also complained that it was not given the chance to contest allegations of fraud. The SEC, on the other hand, said proposed clauses for BlockFi’s management to be released were too vague and general.

Binance.US withdrew its offer after the SEC raised similar concerns in relation to cryptocurrency lender Voyager. BlockFi’s creditor have also said that the bankruptcy plan of BlockFi is an expensive and complicated way to release executives from legal liability for poor financial decisions and have suggested that the company should be liquidated.

Read more about ‘End Extortion’: BlockFi creditors file to liquidate estate

Parikshit Miishra is the editor.