The regulator asserted its claims should be counted as part of “general unsecured claims” in the ongoing Chapter 11 bankruptcy proceedings, but agreed to forego the payment “in order to maximize the amount that may be distributed to investors and avoid delay in such distribution,” according to the agreement reached on June 22. Source
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. BlockFiโs 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…
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…
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 โโBlockfi 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 companyโs 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.ย 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 BlockFiโs custodial accounts belong to clients rather than the companyโs estate. However, the judge further ruled that another $375 million that users sought to transfer from interest-bearing accounts following Novemberโs 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: ๐บ๐ธ 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! โ Bitcoin Magazine (@BitcoinMagazine) May 11, 2023…