FTX and BlockFi have obtained the approval to renew
proceedings for the negotiation of claims settlement within the aftermath of
BlockFi’s chapter submitting final yr. This step permits FTX to current
its arguments, paving the best way for a possible settlement between the 2 companies.
BlockFi filed for chapter in November 2022,
citing the results of FTX’s sudden collapse as a big issue. BlockFi has roughly $355 million on FTX’s platform and an extra $671
million owed by FTX’s sister firm, Alameda Analysis, Coindesk reported.
US chapter decide Michael Kaplan modified the court docket orders on November 13, permitting FTX’s debtors to have interaction in discussions concerning the claims settlement . This permitted the crypto alternate to current its protection, counterclaims, and
setoffs regarding BlockFi’s claims within the ongoing chapter proceedings.
Not too long ago, within the case that discovered FTX’s Former CEO
responsible of fraud and cash laundering prices, BlockFi’s CEO, Zac Prince,
testified. Prince testified towards Sam Bankman-Fried,
highlighting how BlockFi’s chapter instantly resulted from its affiliation with
FTX and Alameda Analysis.
In September, BlockFi’s collectors authorized a
chapter restructuring plan. This plan aimed to recoup losses from the fallout of FTX
and the collapse of crypto hedge fund Three Arrows Capital. Prince
disclosed to the jury that BlockFi’s affiliation with FTX allegedly led to
losses exceeding “a bit of over a billion {dollars}.”
He pointed to mortgage agreements with Alameda,
which began in 2020 and 2021. The crypto lender had prolonged as much as USD $1 billion to
Alameda by Might 2022. Subsequently, Alameda Analysis repaid the preliminary mortgage in full, and BlockFi prolonged new loans amounting to USD $850 million.
Hyperlinks with FTX and Alameda Analysis
BlockFi’s monetary troubles escalated with the
collapse of the Terra Luna crypto ecosystem, which led to important losses. BlockFi sought reimbursement of its loans from Alameda, initiating a
course of that ultimately unfolded right into a billion-dollar loss.
BlockFi provided interest-bearing crypto-lending merchandise previous to submitting for chapter final yr. An unintended leak of the agency’s information confirmed the depth of its monetary troubles. This affected BlockFi’s consumer base of
662,427, with a majority having balances beneath $1,000.
Final yr, BlockFi sued Bankman-Fried’s Emergent Constancy Applied sciences. This lawsuit, filed in the US Chapter
Courtroom for the District of New Jersey, concerned the seizure of Robinhood
shares pledged as collateral to BlockFi.
FTX and BlockFi have obtained the approval to renew
proceedings for the negotiation of claims settlement within the aftermath of
BlockFi’s chapter submitting final yr. This step permits FTX to current
its arguments, paving the best way for a possible settlement between the 2 companies.
BlockFi filed for chapter in November 2022,
citing the results of FTX’s sudden collapse as a big issue. BlockFi has roughly $355 million on FTX’s platform and an extra $671
million owed by FTX’s sister firm, Alameda Analysis, Coindesk reported.
US chapter decide Michael Kaplan modified the court docket orders on November 13, permitting FTX’s debtors to have interaction in discussions concerning the claims settlement . This permitted the crypto alternate to current its protection, counterclaims, and
setoffs regarding BlockFi’s claims within the ongoing chapter proceedings.
Not too long ago, within the case that discovered FTX’s Former CEO
responsible of fraud and cash laundering prices, BlockFi’s CEO, Zac Prince,
testified. Prince testified towards Sam Bankman-Fried,
highlighting how BlockFi’s chapter instantly resulted from its affiliation with
FTX and Alameda Analysis.
In September, BlockFi’s collectors authorized a
chapter restructuring plan. This plan aimed to recoup losses from the fallout of FTX
and the collapse of crypto hedge fund Three Arrows Capital. Prince
disclosed to the jury that BlockFi’s affiliation with FTX allegedly led to
losses exceeding “a bit of over a billion {dollars}.”
He pointed to mortgage agreements with Alameda,
which began in 2020 and 2021. The crypto lender had prolonged as much as USD $1 billion to
Alameda by Might 2022. Subsequently, Alameda Analysis repaid the preliminary mortgage in full, and BlockFi prolonged new loans amounting to USD $850 million.
Hyperlinks with FTX and Alameda Analysis
BlockFi’s monetary troubles escalated with the
collapse of the Terra Luna crypto ecosystem, which led to important losses. BlockFi sought reimbursement of its loans from Alameda, initiating a
course of that ultimately unfolded right into a billion-dollar loss.
BlockFi provided interest-bearing crypto-lending merchandise previous to submitting for chapter final yr. An unintended leak of the agency’s information confirmed the depth of its monetary troubles. This affected BlockFi’s consumer base of
662,427, with a majority having balances beneath $1,000.
Final yr, BlockFi sued Bankman-Fried’s Emergent Constancy Applied sciences. This lawsuit, filed in the US Chapter
Courtroom for the District of New Jersey, concerned the seizure of Robinhood
shares pledged as collateral to BlockFi.
