Crypto bank Silvergate announced on March 3 that it is discontinuing its digital assets’ payment network, claiming the termination is a “risk-based decision”. The move comes after the bank’s stock fell over 59% in the past five days due to fears of a potential bankruptcy. A disclaimer on Silvergate’s website stated: “Effective immediately Silvergate Bank has made a risk-based decision to discontinue the Silvergate Exchange Network (SEN). All other deposit-related services remain operational.” A second decision on the same day from United States Judge Michael B. Kaplan said Silvergate had…
Tag: BlockFi
BlockFi execs, Gemini named in proposed lawsuit by a disgruntled investor
An investor with nearly $2 million worth of funds frozen in bankrupt cryptocurrency lender BlockFi has filed a class action complaint against its founders, two directors and crypto exchange Gemini. In a Feb. 28 complaint filed in the U.S. District Court for the District of New Jersey, investor Trey Greene accused the defendants of numerous wrongdoings, including violating the consumer fraud and exchange acts, breaching its fiduciary duties, as well as offering and selling unregistered securities. “The unregistered securities sold by the BFI [BlockFi] Defendants on behalf of BlockFi were…
BlockFi execs, Gemini named in lawsuit by disgruntled investor
An investor with nearly $2 million worth of funds frozen in bankrupt cryptocurrency lender BlockFi has filed a class-action complaint against its founders, two directors and crypto exchange Gemini. In a Feb. 28 complaint filed in the U.S. District Court for the District of New Jersey, investor Trey Greene accused the defendants of numerous wrongdoings, including violating the consumer fraud and exchange acts and breaching its fiduciary duties, as well as offering and selling unregistered securities. “The unregistered securities sold by the BFI [BlockFi] Defendants on behalf of BlockFi were…
BlockFi appeals to cancel bankruptcy status for SBF’s offshore investment vehicle
The consequences of the FTX scandal at the hands of its founder and former CEO, Sam “SBF” Bankman-Fried, continue to surface. On Feb. 17, it was reported that bankrupt crypto lender BlockFi has appealed to the United States Bankruptcy Court in Wilmington, Delaware to strip the Chapter 11 bankruptcy protections from SBF’s offshore investment vehicle. Emergent Fidelity Technologies Ltd. was used by the FTX founder to purchase a 7.6% stake in Robinhood Markets Inc. According to BlockFi’s motion, the bankruptcy status of Emergent Fidelity holds little purpose and was filed…
BlockFi Looks to Dismiss Bankruptcy Case for SBF’s Robinhood Shell Company
The bankruptcy filing, made Feb. 3, was not made in good faith; the company isn’t eligible, having no employees, no income and no business; and the case exists “solely” to advance the interests of Antiguan liquidators who’ve already gained over $1.7 million in fees, BlockFi said. Source
Bitfarms settles outstanding loan with BlockFi for $7.75M
Bitcoin (BTC) miner Bitfarms has settled its debt obligations with BlockFi, closing the chapter on its short relationship with the bankrupt cryptocurrency lender. On Feb. 9, Bitfarms disclosed that it had settled its $21 million debt obligations with BlockFi for a single $7.75 million cash payment. The settlement was reached weeks after Bitfarms warned that it might default on its BlockFi loan. “Combined with the earlier restructuring and elimination of our capital expenditure obligations in December, this successful negotiation and settlement furthers our initiatives to reduce indebtedness,” said Jeff Lucas,…
Bankrupt Crypto Lender BlockFi Takes Two-Thirds Haircut to Settle Bitcoin Miner Bitfarms’ Debt
“Lowering our debt nearly 85% from a high of $165 million in June 2022 to $25 million today has significantly decreased principal and interest obligations, which boosts our cash flow and positions us well for future growth,” Bitfarms CEO Jeff Lucas said in the Thursday press release. Original
BlockFi gets court nod to sell crypto mining assets
Bankrupt crypto lender BlockFi has been granted court approval to sell off its crypto mining equipment as part of ongoing efforts to repay its creditors. A court document filed on Jan. 30 in the United States Bankruptcy Court for the District of New Jersey stated that the approval for BlockFi to sell its assets was on the grounds that it was “fair, reasonable and appropriate under the circumstances.” The court acknowledged the sale of the assets is “designed” to maximize the recovery and “realizable value” of the company. With the…
FTX creditors list, BlockFi $1.2B exposure and new Celsius token…
Top Stories This Week FTX creditor list shows airlines, charities and tech firms caught in collapse The complete list of creditors owed money by the bankrupt cryptocurrency exchange FTX has been released, revealing a wide range of global companies. Among the potential creditors are airlines, hotels, charities, banks, venture capital companies, media outlets and crypto companies, along with United States and international government agencies. According to another headline regarding the FTX scandal, U.S. federal prosecutors allege that Sam Bankman-Fried invested $400 million in the venture capital firm Modulo Capital with…
BlockFi reportedly posts uncensored financials revealing $1.2 billion FTX exposure
Bankrupt crypto lending firm BlockFi has reportedly uploaded financials by accident, revealing $1.2 billion in assets tied up with bankrupt exchange FTX and Alameda Research. According to a Jan. 25 report from CNBC, the unredacted filings show that as of Jan. 14, BlockFi had $415.9 million worth of assets linked to FTX, and a whopping $831.3 million in loans to Alameda. The financials were leaked as part of a presentation put together by M3 Partners, who is an advisor to the creditor committee. Related: BlockFi to sell $160M in Bitcoin miner-backed…