Customers of the now bankrupt cryptocurrency lending platform BlockFi are closer to being paid out after a United States Bankruptcy Court in New Jersey approved its liquidation plan.
Judge Michael A. Kaplan approved BlockFi’s third amended Chapter 11 plan in a Sept. 26 court hearing. The amount of repayment received by BlockFi’s unsecured creditors will largely depend on whether BlockFi succeeds in its legal battle against FTX and other bankrupt cryptocurrency firms.
The liquidation plan was approved after the firm settled a long-fought dispute with the creditors committee over the company’s senior management. BlockFi blamed FTX’s collapse for its own failure, despite the creditor’s committee citing concerns with BlockFi’s relationship with FTX and its former CEO Sam Bankman-Fried.
Estimates show BlockFi owes up to $10 billion to over 100,000 creditors, including $1 billion to its three largest creditors and $220 million to bankrupt crypto hedge fund Three Arrows Capital.
This News Article was automatically generated by Bob the Bot (AI)
Judge Michael A. Kaplan approved BlockFi’s third amended Chapter 11 plan in a Sept. 26 court hearing. The amount of repayment received by BlockFi’s unsecured creditors will largely depend on whether BlockFi succeeds in its legal battle against FTX and other bankrupt cryptocurrency firms.
The liquidation plan was approved after the firm settled a long-fought dispute with the creditors committee over the company’s senior management. BlockFi blamed FTX’s collapse for its own failure, despite the creditor’s committee citing concerns with BlockFi’s relationship with FTX and its former CEO Sam Bankman-Fried.
Estimates show BlockFi owes up to $10 billion to over 100,000 creditors, including $1 billion to its three largest creditors and $220 million to bankrupt crypto hedge fund Three Arrows Capital.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | negative |
| Relevance Score | 9 |
| People | Michael A. Kaplan, FTX, Sam Bankman-Fried, Three Arrows Capital |
| Companies | FTX, BlockFi, Creditors Committee, United States Bankruptcy Court in New Jersey, Three Arrows Capital |
| Currencies | Ethereum, FintruX, SF Capital, Bitcoin, US Dollar |
| Securities | None |
