US court plans to approve BlockFi’s liquidation plan

Judge Michael Kaplan plans to approve BlockFi’s liquidation plan. Therein, some clients will receive partial compensation in Bitcoin (BTC) or Ethereum (ETH).

Depending on the outcome of BlockFi’s legal battle with FTX exchange and Three Arrows Capital (3AC) hedge fund, unsecured creditors may receive between 35% and 63% of their funds by the end of 2023. The exact amount of compensation is uncertain and could potentially be affected by up to $1 billion.

According to reports on Sep. 26, Michael Kaplan also said he will reject the objections raised by the U.S. Department of Justice’s bankruptcy watchdog regarding the termination of BlockFi’s senior management in the liquidation plan.

You might also like: BlockFi battles FTX, 3AC in court over repayment claims

On Nov. 11, 2022, BlockFi suspended withdrawals following the turmoil in FTX and Alameda Research. 

A few days prior, Flory Marques, the platform’s founder, had reassured clients that their products were functional and the business was free from Sam Bankman-Fried’s companies.

Less than three weeks after suspending withdrawals, BlockFi and eight subsidiaries filed for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code. 

In May 2023, the court permitted BlockFi to return $300 million to customers with funds held in custodial accounts. However, the court did not recognize this amount as the platform’s property. After a failed attempt to sell the platform, the manager announced its intention to liquidate the company.

The compensation set for distribution primarily hinges on the pending proceedings involving the collapsed crypto exchange FTX, Alameda Research, and the bankrupt hedge fund, 3AC.

Read more: Creditors request BlockFi’s dissolution, accuse CEO of fraud and extortion
Follow Us on Google News

Comments

Post a Comment

Popular posts from this blog

CleanSpark’s Bitcoin mining capacity hits 8 EH/s as new facility goes live

Image
The Bitcoin mining company kicked off the second phase of its mining campus in Georgia, gearing up for the next Bitcoin halving. Bitcoin miner CleanSpark has begun the second phase of operations at its mining campus in Washington, a city in the U.S. state of Georgia, reaching 8.0 exahashes per second (EH/s), halfway to its year-end target of 16 EH/s.  The second phase saw an investment of nearly $55 million in the site, including construction, infrastructure and machines. The facility , bought in August 2022 for $25.1 million, had 15,000 mining machines with a power capacity of 50 megawatts (MW). According to the company, the capital deployed expands its total power capacity to 86 MW. “Today, it’s 50 megawatts of new power added on to the 36 megawatts we previously had constructed there. So, there’s 86 megawatts, or 12 times the load provided by the city," said Matthew Schultz, CleanSpark’s executive chairman, during an investors' conference on July 13. According to Schu...
Read more

Tether bitcoin mine branded 'fake' after X users spot edited logos

Image
A recent tweet from Tether CTO Paolo Ardoino in which he claims work on one of the company’s new sustainable bitcoin mining projects is “coming along well” has given rise to a curious new conspiracy theory. The tweet featured what at first glance looked to be an innocuous image of a number of shipping containers that had apparently been converted hold crypto miners. However, it didn’t take eagle-eyed viewers long to spot that something wasn’t quite right — namely that the Tether logos on the side of the containers looked Photoshopped. This led to speculation that not only were the logos fake, but the site itself was a fabrication . One of #Tether energy production and #Bitcoin mining sites coming along well. pic.twitter.com/6Z8o6A5OaE — Paolo Ardoino (@paoloardoino) August 24, 2023 “Is this a real Mining site owned by Tether ? Tether ’s logo looks poorly photoshopped, there. What’s going on?” wrote one, while another said, “lol you really trying to pass that off as...
Read more

Is Solana a Good Investment?

Image
Is Solana a Good Investment in the Crypto Market? ‍With the increasing popularity of cryptocurrencies, investors are constantly seeking opportunities to maximize their returns. Solana (SOL) has emerged as one of the most promising projects in the crypto market, known for its scalability, speed, and low transaction fees. In this article, we will conduct a comprehensive analysis to determine whether Solana is a good investment option for both short-term and long-term investors. Also read: Bitcoin: South Korean Lender Delio Plans To Sue Authorities Understanding Solana and its Potential Solana is a blockchain platform that aims to provide a fast and efficient infrastructure for decentralized applications (dApps) and digital assets. It differentiates itself through its unique consensus mechanism, Proof of History (PoH), which enables the network to process thousands of transactions per second. With its high throughput and low fees, Solana has gained significant attention ...
Read more