BlockFi’s Liquidation Plan Approved; Firm Owes $10 billion to Creditors
Summary:
The US Bankruptcy Court in New Jersey has approved the liquidation plan of bankrupt crypto lending platform, BlockFi. The approval follows a resolved dispute with the creditors committee about the company’s upper management. BlockFi had blamed the failure of FTX for its own bankruptcy, a claim disputed by the creditor's committee. The firm owes around $10 billion to more than 100,000 creditors. Further details will get updated as the story develops.
The ill-fated crypto lending platform, BlockFi, moves a step forward in reimbursing its customers following a nod of approval for its liquidation plan from a U.S. Bankruptcy Court in New Jersey. The third amended Chapter 11 plan proposed by BlockFi was approved by Judge Michael A Kaplan during a court session on September 26, as indicated by a document filed the same day. As disclosed in the bankruptcy case of BlockFi by Kroll, the amount that the unsecured creditors of BlockFi will be paid relies heavily on the outcome of BlockFi's legal war against FTX and other bankrupt crypto enterprises. The endorsement of BlockFi's liquidation scheme came on the heels of a resolved persistent disagreement between the firm and the creditors committee regarding the senior executives of BlockFi. BlockFi, now insolvent, put the blame on FTX's demise for its own collapse, despite the disbelief of the creditors' committee on the relationship between BlockFi, FTX and its ex-CEO, Sam Bankman-Fried. An estimation suggests that BlockFi is in debt of roughly $10 billion to over 100,000 creditors, which incorporates $1 billion owed to its top three creditors and a staggering $220 million to the bankrupt cryptocurrency hedge fund Three Arrows Capital. As additional details emerge, they will be updated accordingly. Feature: Unveiling the mystery of what crypto exchanges do with your funds?
Published At
9/26/2023 10:18:09 PM
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