U.S. Bankruptcy Court Approves BlockFi Liquidation Plan
September 27th, Judge Michael A. Kaplan of the United States Bankruptcy Court approved the liquidation plan of bankrupt cryptocurrency lending company BlockFi. The compensation amount received by BlockFi's unsecured creditors will largely depend on whether BlockFi wins in legal battles against FTX and other bankrupt cryptocurrency companies.
BlockFi: Some Customer Data Leaked Affected by Bankruptcy Claims Agent Kroll Data Breach
Bankrupt crypto lending platform BlockFi announced on its social media platform that the attack on claims agent Kroll also resulted in the partial leakage of customer data for BlockFi. However, BlockFi's internal systems and customer funds were not affected.BlockFi reminds users to upgrade their security measures and beware of scams in the form of phishing emails, etc.
BlockFi Fights To Block FTX and 3AC From Retrieving Funds for Creditors
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 Has Initiated a Creditor Vote on Planned Chapter 11 Bankruptcy Filing
Encrypted lending platform BlockFi has launched a creditor vote solicitation for the Chapter 11 bankruptcy protection application plan. All eligible creditors have the opportunity to vote on the Kroll website before 4:00 PM Eastern Time on September 11, 2023. In the next few days, all creditors will receive detailed instructions on voting eligibility, filling out and submitting ballots via Kroll's email.
BlockFi's Disclosure Statement Conditionally Approved in Chapter 11 Bankruptcy Proceedings
BlockFi has received conditional approval for its disclosure statement from the US bankruptcy court in New Jersey as part of its Chapter 11 reorganization. The approval moves the lender one step closer to maximizing recoveries for its creditors. BlockFi's proposed bankruptcy plan has been criticized by FTX, Three Arrows Capital (3AC), and the Securities and Exchange Commission (SEC) for unfairly downgrading their claims and lacking procedural fairness. The deadline for voting on the proposed reorganization is September 11.
BlockFi Allegedly Attempted to Convert $239 Million of Customer Crypto into Fiat to Avoid Liability, Investigation Finds
BlockFi is accused of attempting to convert $239 million of customer crypto into fiat to avoid liability after FTX filed for bankruptcy in 2022, according to a report by BlockFi's committee of unsecured creditors.
Three Arrows Capital Liquidator Considers Reclaiming $1.2 Billion from Digital Currency Group and BlockFi
The liquidator of Three Arrows Capital (3AC) is exploring the possibility of reclaiming around $1.2 billion from Digital Currency Group (DCG) and BlockFi by seeking repayment of payments made by the hedge fund before the liquidation process. The liquidator's confidential report indicates that over $1 billion in potential claims are being considered against DCG and its Genesis lending subsidiary, along with an additional $220 million in preferential payments made to BlockFi.
FTX, Three Arrows Capital, and SEC Oppose BlockFi's Bankruptcy Plan Over Disputed Transactions Worth Over $1 Billion
FTX has filed a legal document claiming that proposals made by BlockFi, a defunct crypto lender, are an abuse of bankruptcy rules. The proposals, which will be discussed in a New Jersey court hearing on July 13, have also been opposed by Three Arrows Capital and the Securities and Exchange Commission. FTX claims that its claims against BlockFi have been unfairly downgraded by the proposed plan. The filings are part of an attempt to unravel complex financial transactions among crypto companies that are now undergoing separate bankruptcy cases.
BlockFi Creditors Push for Chapter 11 Trustee Amid Allegations of Fraud and Broken Promises
June 28 (Cointime) - BlockFi's Official Committee of Unsecured Creditors has filed a court document calling for a Chapter 11 trustee to be appointed, exclusivity periods to be terminated, or the cases to be converted to Chapter 7 proceedings. The UCC claims that BlockFi customers do not have a clear understanding of what happened, which is "facilitating case mischief."
Creditors Accuse BlockFi CEO of Fraud and Extortion in Delaying Bankruptcy Proceedings
June 28 (Cointime) - Creditors of bankrupt cryptocurrency lender BlockFi have filed for the company to be liquidated, accusing CEO Zac Prince and other management of fraud, extortion, and delaying bankruptcy proceedings.
