As known from:
known from Coinwireknown from Benchknown from Coinindex
  • About CryptoGmblr.com
Contains commercial content
Cryptogambling / Defunct crypto lender BlockFi secures court approval to repay customers

Defunct crypto lender BlockFi secures court approval to repay customers

Publish Date: 27/09/2023
Stock Photo, tags: blockfi court approval - images.unsplash.com

Stock Photo – images.unsplash.com

Defunct crypto lender BlockFi has secured the approval of the U.S. Bankruptcy Court in New Jersey for its liquidation plan. The news is a long-awaited development for its customers, who have been expecting repayment since last year.

The firm filed its first liquidation plan to the bankruptcy court on November 28 last year, saying it would “focus on recovering all obligations owed to BlockFi by counterparties.” However, a dispute with the creditors’ committee forced BlockFi to submit amended plans on May 12, June 28 and July 31.

The company secured Judge Michael Kaplan’s approval for their third Chapter 11 plan on Monday, September 25.

“BlockFi’s mission through this process has been to maximize recoveries for our creditors, and conditional approval of our Disclosure Statement moves us one step closer to accomplishing that goal,” Mark Renzi, BlockFi’s chief restructuring officer, said.

“We are confident that our Plan provides the best path to expeditiously return crypto to our clients and we strongly urge BlockFi’s clients to vote to accept it.”

The company owes up to $10 billion to more than 100,000 creditors, including $1 billion to its three major creditors and $220 million to Three Arrows Capital. According to court documents, some creditors are entitled to receive varying amounts of partial repayment.

However, the amount that will be repaid to unsecured creditors will largely depend on the outcome of BlockFi’s legal battle. A recent report indicates that creditors without collateral may be able to get up to 35 – 63 percent of what they are owed, and some may even receive partial payments in either Bitcoin or Ethereum.

BlockFi’s bankruptcy plan is objected to by several oppositions, including the U.S. Securities and Exchange Commission (SEC), FTX and Three Arrows Capital. The court has also received a request from BlockFi creditors asking to appoint a new management firm to oversee BlockFi’s bankruptcy plan, fearing misallocation of funds.

Allegations surrounding BlockFi’s collapse

The now-bankrupt lending platform attributes its failure to the collapse of FTX, another major crypto firm. Both companies used to be partners, with BlockFi signing a term sheet with FTX to secure a $250 million revolving line of credit. However, BlockFi’s creditors’ committee suspects that BlockFi’s bankruptcy is more likely to be a case of irresponsible fund management rather than just a case of FTX contagion.

Considering the close relationship between the company, many suspected that Prince had prior knowledge of FTX’s monetary difficulties. Some creditors claimed that Prince had ignored warnings from BlockFi’s risk management team and asked the risk team to “get comfortable” with exposures to FTX and its sister company, Alameda Research, which ended up playing a role in BlockFi’s downfall.

BlockFi contended that FTX and Alameda engaged in a fraudulent scheme to deceitfully persuade BlockFi into lending more than $1 billion worth of digital assets that were deposited on the BlockFi platform to Alameda Research.

After its bankruptcy, BlockFi explained that repaying its customers depended on its efforts to receive some money back from FTX and Alameda. As a result, FTX opposes BlockFi’s bankruptcy plan, claiming that its proposals are an abuse of bankruptcy rules.

Top Online Casinos
Top Casinos Bonuses
Stake.us
Stake.us
Stake.us Review
4.6/5
McLuck
McLuck
McLuck Review
4.6/5
Wow Vegas
Wow Vegas
Wow Vegas Review
4.5/5
High5Casino
High5Casino
High5Casino Review
4.1/5
Fortune Coins
Fortune Coins
Fortune Coins Review
3.8/5
Stake.us
Stake.us Bonus
55 Stake Cash + 260K Gold Coins + 5% Rakeback
T&Cs apply
4.6/5
McLuck
McLuck Bonus
27.5 SC FREE and 57.5K Gold Coins
T&Cs apply
4.6/5
Wow Vegas
Wow Vegas Bonus
35 SC FREE and 1.75M WOW Coins
T&Cs apply
4.5/5
High5Casino
High5Casino Bonus
Get 5 SC FREE+ 250 Gold Coins and 600 Diamonds!
T&Cs apply
4.1/5
Fortune Coins
Fortune Coins Bonus
Claim Your Free 650,000 Gold Coins & 1,400 Fortune Coins
T&Cs apply
3.8/5
Latest News
Charles Hoskinson forecasts Altcoin season showdown: ADA vs. DOGE
Cardano (ADA) Faces Dual Meme Coin Competition where ...
Top 5 AI cryptocurrencies ready to thrive during the next bull market
New crypto ventures merge the groundbreaking capabilities of ...
Top Crypto Exchange Sites
Crypto Exchange Guide
  • Crypto Exchanges
  • Betting Exchange
Top Brands
Top Bonuses
Stake.us
Stake.us
Stake.us Review
4.6/5
McLuck
McLuck
McLuck Review
4.6/5
Wow Vegas
Wow Vegas
Wow Vegas Review
4.5/5
High5Casino
High5Casino
High5Casino Review
4.1/5
Fortune Coins
Fortune Coins
Fortune Coins Review
3.8/5
Stake.us
Stake.us Bonus
55 Stake Cash + 260K Gold Coins + 5% Rakeback
T&Cs apply
4.6/5
McLuck
McLuck Bonus
27.5 SC FREE and 57.5K Gold Coins
T&Cs apply
4.6/5
Wow Vegas
Wow Vegas Bonus
35 SC FREE and 1.75M WOW Coins
T&Cs apply
4.5/5
High5Casino
High5Casino Bonus
Get 5 SC FREE+ 250 Gold Coins and 600 Diamonds!
T&Cs apply
4.1/5
Fortune Coins
Fortune Coins Bonus
Claim Your Free 650,000 Gold Coins & 1,400 Fortune Coins
T&Cs apply
3.8/5

Players must be 21 years of age or older or reach the minimum age for gambling in their respective state and located in jurisdictions where online gambling is legal. Please play responsibly. Bet with your head, not over it. If you or someone you know has a gambling problem, and wants help, call or visit: (a) the Council on Compulsive Gambling of New Jersey at 1-800-Gambler or www.800gambler.org; or (b) Gamblers Anonymous at 855-2-CALL-GA or www.gamblersanonymous.org.

Trading financial products carries a high risk to your capital, especially trading leverage products such as CFDs. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

This site is using Cloudflare and adheres to the Google Safe Browsing Program. We adapted Google's Privacy Guidelines to keep your data safe at all times.

21+NCPGGamblers AnonymousCloudflareSSLco² neutral
Close
Players accepted in the US US Flag
Stake.us Exclusive Bonus
55 Stake Cash + 260K Gold Coins + 5% Rakeback
Promo Code
Go to Stake.us
Visit Site
T&Cs apply, 18+
Payment Methods
Bitcoin
Litecoin
Ethereum
Dogecoin
Highlights
  • Exclusive promo code: CRYPTGAMBL
  • Play Stake Originals games for free
  • Get free Stake Cash daily just by logging in
Stake Originals
Dice
Crash
Plinko
Mines
×
Your Bonus Code:
The bonus offer of was already opened in an additional window. If not, you can open it also by clicking the following link:
Visit Site