Tag: BlockFi

BlockFi opens crypto withdrawals for eligible US users following court order

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Many customers at defunct crypto lending firm BlockFi have reported being able to withdraw funds for the first time in months following an order from a United States bankruptcy court. In an Aug. 17 update on X, BlockFi said it had opened withdrawals for wallets of eligible users in the U.S. in accordance with a bankruptcy court order. The lending firm said the withdrawals did not extend to many wallets controlled by international users, but legal proceedings were ongoing. “As authorized by the Court in the Wallet Order, eligible clients…

BlockFi CEO ignored risks from FTX and Alameda exposure, contributing to collapse: court filing

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Zac Prince, the CEO of bankrupt cryptocurrency lending firm BlockFi, allegedly disregarded recommendations from the company’s risk management team over lending assets to Alameda Research.  According to a July 14 filing with United States Bankruptcy Court for the District of New Jersey by the unsecured creditors’ committee, BlockFi’s risk management team reported on the “high risks” associated with lending assets to Alameda. Prince allegedly dismissed concerns from the team on BlockFi lending Alameda $217 million by August 2021. The team suggested there could be risks should the FTX Tokens (FTT) used to…

3AC Liquidator May Try to Claw Back About $1.2B From Digital Currency Group, BlockFi

A confidential July 7 report from Teneo, the liquidator, that CoinDesk reviewed referred to more than $1 billion of “prospective claims” against DCG and its Genesis lending subsidiary consisting of “both preference claims and claims which have resulted from issues around the perfection of loan and security documentation.” It also noted more than $220 million of “preferential payments” to BlockFi. Source

Maple Finance announces direct lending to fill the void left by BlockFi, Celsius

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Web3 lending platform Maple Finance has announced the launch of a direct lending program, according to a June 28 fact sheet from the platform’s development team. The program is intended to replace services previously provided by Celsius, BlockFi and other now-bankrupt lenders. The first lending pool will be available sometime in July, the company stated. Introducing Maple Direct, the new lending arm of Maple Finance. With the formation of Maple Direct, Web3 now has a specialist digital native lender and launches to meet the growing institutional demand for a trusted…

‘End the Extortion:’ BlockFi Creditors File to Liquidate Estate

“It is time to end all of this,” the creditors’ filing said, adding that, unlike other cases of alleged crypto wrongdoing, such as Sam Bankman-Fried’s FTX, “BlockFi customers do not yet know their story, and this is facilitating case mischief … It is time for the Court to order an end to the burn and, thereby, end the extortion tactics.” Source

BlockFi Initiates Legal Action against State Commission for Not Accepting Its Surrendered License

Instead of accepting or acknowledging the license return, the commission insists that BlockFi undergo administrative proceedings. The bankrupt crypto exchange was left with no option but to sue Jorge Perez, the Connecticut banking commissioner. BlockFi’s attempts to return its Connecticut money transmitter license have been futile, as the state regulator has repeatedly refused to respond. Instead of accepting or acknowledging the license return, the commission insists that BlockFi undergo administrative processes that would require the bankrupt crypto exchange to go through some court proceedings or pay a fine. BlockFi filed…

Court directs BlockFi to retract chapter 11 reorganization plan

A U.S. bankruptcy court recently ordered cryptocurrency lender BlockFi to withdraw its prematurely disclosed chapter 11 reorganization plan and accompanying statement until all materials are formally authorized. On May 18, the court directed BlockFi, the insolvent cryptocurrency lender, to retract its prematurely disclosed chapter 11 reorganization plan and corresponding statement. The court insisted these documents should not have been revealed before being officially sanctioned. As a remedial measure, BlockFi was instructed to issue a rectification statement on its Twitter account within a day, which it promptly followed. The rectification tweet…