The creditors and other parties do not support the reorganization plan, the corrective letter said. The Official Committee of Unsecured Creditors “believes that the plan provides releases of litigation claims against, among others, current and former directors and officers of BlockFi that committed significant misconduct that harmed BlockFi and its customers.” Source
CryptoX – Cryptocurrency Analysis and News Portal The creditors and other parties do not support the reorganization plan, the corrective letter said. The Official Committee of Unsecured Creditors “believes that the plan provides releases of litigation claims against, among others, current and former directors and officers of BlockFi that committed significant misconduct that harmed BlockFi and its customers.” Original Source The post BlockFi Ordered by U.S. Bankruptcy Court to Withdraw Unapproved Reorganization Plan Shared ‘Prematurely’ appeared first on CryptoX. CryptoX Portal
The now-defunct crypto lender Blockfi has recently filed a court document outlining its plans to liquidate the company. The firm has come to the realization that selling the company would not be beneficial to its creditors. As a result, Blockfi has decided to take matters into its own hands and proceed with a self-liquidating transaction. Once the assets are distributed, the company will be wound down. Blockfi Explores Self-Liquidation and Alternative Transaction Options Blockfi has recently updated the community with a notice regarding its latest disclosure statement with the bankruptcy…
Disgruntled creditors of the bankrupt cryptocurrency lending firm BlockFi have submitted a new court filing in response to the company’s latest restructuring plan. On May 12, BlockFi outlined its Chapter 11 reorganization plan in a filing with the United States Bankruptcy Court in Trenton, New Jersey. The firm said that selling BlockFi might not generate enough value for creditors, as it owes nearly $1.3 billion to its top 50 creditors. In response, BlockFi creditors submitted another court filing on May 15, arguing that BlockFi deliberately took measures to delay the…
Last week, New Jersey Bankruptcy Judge Michael Kaplan ruled BlockFi custodial wallet users can be returned nearly $300 million in funds owed. The liquidation plan filed on Friday “provides for the return of non-estate digital assets held in client wallet accounts in connection with the Wallet Program in full, subject to applicable set offs,” the firm tweeted. Source
A judge has approved repayment for BlockFi custodial wallet holders but said interest-bearing funds still belong to the bankrupt company. BlockFi custodial wallet users could receive a massive $300 million repayment from the bankrupt digital asset lender. On Thursday, a New Jersey judge ruled that the assets locked in BlockFi’s custodial accounts belong to clients rather than the company’s estate. However, the judge further ruled that another $375 million that users sought to transfer from interest-bearing accounts following November’s withdrawal suspension still belong to BlockFi. As Judge Michael Kaplan put…
A bankruptcy judge has ruled that transfers made as of November 10, 2021 by the cryptocurrency firm BlockFi are void. Therefore, the customers who attempted to retrieve almost $300 million in crypto following the freezing of transfers last year are not entitled to the digital assets. JUST IN: 🇺🇸 Judge rules that BlockFi users gave up legal rights to their BTC by using the platform and all the $300 million of crypto deposits are now property of BlockFi. Take your #bitcoin off exchanges! — Bitcoin Magazine (@BitcoinMagazine) May 11, 2023…
A United States judge has granted permission to bankrupt crypto lender BlockFi to return $297 million to customers with deposits held in its Wallet program, Reuters reported on May 11. The return of funds does not apply to users of interest-bearing accounts (BIA). According to bankruptcy Judge Michael Kaplan, funds in BIA accounts were used by BlockFi for its lending business and therefore are property of the bankruptcy estates. This means the funds will be later used to repay all creditors. The Wallet program, in contrast, did not pay interest…
“The court finds that all digital assets held by the debtors in custodial omnibus wallets are indeed client property, and not property of the bankruptcy estates, subject, of course, to possible avoidance and clawback rights,” Kaplan said, but had less happy news for BIA customers. Source
BlockFi, a lender of digital assets, was given additional time to submit a bankruptcy exit plan by a New Jersey bankruptcy judge in the United States on April 19. The cryptocurrency lender filed for bankruptcy in November 2022 and has been reportedly granted a 48-day extension until May 15 to file an exit plan. The crypto firm is exploring a potential sale of company assets or the possibility of getting an outside backer to support a restructuring deal, BlockFi lawyer Joshua Sussberg said in a hearing Wednesday. According to the…