New Developments in the BlockFi Bankruptcy
A former crypto lender has recovered $15 million from an investor threatening legal action.
The controversy centers around the fall in BlockFi’s equity value in the summer of last year. BlokFi’s lawyer said the company’s executives have not released their locked crypto.
Crypto lender BlockFi has returned $15 million to an investor who threatened legal action. Reuters revealed the development early in the morning, noting that the dispute was based on BlockFi’s equity price falling in the summer of last year.
The report said that the stock sold below the estimate of $6-8 billion of the company’s profit in January 2022 fell after the collapse of Terra Luna and FTX. During Monday’s bankruptcy court hearing, BlockFi attorney Joshua Sussberg said the settlement was satisfied by the investor, known only as ‘Counterparty A’, who bought the shares as part of the debt. job.
BlockFi Denied Return of Robinhood Sales by U.S. Bankruptcy Judge, Insiders Did Not Remove Crypto from Platform
Notably, BlokFi filed for bankruptcy in November, shortly after crypto exchange FTX collapsed. BlockFi’s lawyers told the court yesterday that the company’s executives have not removed any of their locked crypto from the platform since October 2022.
Attorney Sussberg said:
The important thing to take here is that there are no examples of insiders withdrawing money from the platform at or close to this financial filing. Additionally, U.S. Bankruptcy Judge Michael Kaplan denied BlockFi’s claim for the return of Robinhood’s sales that FTX promised to BlockFi as collateral for the loan.
At this time, it is clear that this court cannot grant any kind of transfer order. The judge explained that the government is holding the shares because of a warrant of arrest and is not part of the ongoing opposition process.