10 Jan 2023
BlockFi to file bankruptcy assets and liabilities
BlockFi has stated that it will make its assets, debts, and payments received before declaring bankruptcy in November 2022 public.
BlockFi, a crypto lending company, announced on January 9 that it would provide details about its assets, liabilities, and payments received before filing for bankruptcy in November 2022.
BlockFi has provided stakeholders with a presentation outlining upcoming court filings and a summary of the case as part of the bankruptcy proceedings. The lending company claims it has contacted 106 potential buyers and will seek court approval for the bidding process on January 30. This follows the company's first bankruptcy hearing in November 2022.
Additionally, the company claimed that as of 14 October 2022, no company members had withdrawn any cryptocurrency from the platform, and as of 17 August 2022, no company members had withdrawn more than 0.2 BTC. Base salaries were raised, and retention bonuses were given to some employees after the company received a $400 million revolving credit facility from FTX US in July 2022.
In addition, on January 11th, BlockFi planned to submit a statement of financial affairs and an inventory of its assets and liabilities. The US Department of Justice (DoJ) informed the bankruptcy court that it had seized 55 million Robinhood shares, at the time of publication valued at about $450 million, as part of the criminal case against crypto exchange FTX and its executives, prompting the announcement. BlockFi, which has financial ties to FTX, was a claimant for the shares.
Many users reported losses in the millions of dollars last year after FTX, Celsius Network, and Voyager Digital filed for Chapter 11 bankruptcy. While BlockFi's omnibus hearing is scheduled for the 17th of the month, the next public hearing in the bankruptcy case of FTX is on the 11th. According to the firm:
"BlockFi looks forward to continuing its open dialogue with the UCC, U.S. Trustee, and all stakeholders in its chapter 11 cases. More information related to the Claims Process and the filing of Proof of Claims will be sent to clients at the appropriate time. Please note that, at this time, no deadlines have been set."
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