Bankruptcy Court Told FTX and Alameda They Owe BlockFi $1 Billion...But It's Complicated
Although BlockFi attempted to spin off FTX and Alameda in its bankruptcy proceedings, it has extensive financial ties to companies belonging to SBF.
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A lawyer for BlockFi said during the day one hearing of its bankruptcy proceedings that the cryptocurrency lender had $355 million tied up in FTX and the exchange's sister company collapsed, Alameda Research, had defaulted on a $680 million loan.
BlockFi filed 15 motions on Nov. 28 that were approved by the court in the first day of hearings on Nov. 29, including deleting the personal data of its 50 largest creditors and appointing the administration of Kroll's restructuring as its claims and notifying agent - the same firm chosen by FTX for its Chapter 11 bankruptcy case.
In an emailed message to concerned customers, BlockFi noted that the approved motions allow it to continue "basic operations" during the restructuring process, and also to continue paying its employees and subcontractors. independent contractors. BlockFi estimates that its payroll is around $5.8 million per month and that it owed around $1.5 million in wages when it filed the petition on November 28.
The message to customers stated that BlockFi's "sole purpose" throughout the process was to "maximize value for all customers and other stakeholders".
According to a November 29 CNBC report, BlockFi attorney Joshua Sussberg also added during the hearing that BlockFi plans to reopen withdrawals to customers at an undetermined time, and he was optimistic that the company would be able to save the company after the restructuring.
While FTX and...
Although BlockFi attempted to spin off FTX and Alameda in its bankruptcy proceedings, it has extensive financial ties to companies belonging to SBF.
New
A lawyer for BlockFi said during the day one hearing of its bankruptcy proceedings that the cryptocurrency lender had $355 million tied up in FTX and the exchange's sister company collapsed, Alameda Research, had defaulted on a $680 million loan.
BlockFi filed 15 motions on Nov. 28 that were approved by the court in the first day of hearings on Nov. 29, including deleting the personal data of its 50 largest creditors and appointing the administration of Kroll's restructuring as its claims and notifying agent - the same firm chosen by FTX for its Chapter 11 bankruptcy case.
In an emailed message to concerned customers, BlockFi noted that the approved motions allow it to continue "basic operations" during the restructuring process, and also to continue paying its employees and subcontractors. independent contractors. BlockFi estimates that its payroll is around $5.8 million per month and that it owed around $1.5 million in wages when it filed the petition on November 28.
The message to customers stated that BlockFi's "sole purpose" throughout the process was to "maximize value for all customers and other stakeholders".
According to a November 29 CNBC report, BlockFi attorney Joshua Sussberg also added during the hearing that BlockFi plans to reopen withdrawals to customers at an undetermined time, and he was optimistic that the company would be able to save the company after the restructuring.
While FTX and...
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