The sovereign investment arm of the Kingdom of Bhutan, which is estimated to manage some $2.9 billion in assets, has placed millions of dollars in cryptocurrency and was a client of bankrupt crypto companies BlockFi and Celsius.
Druk Holding and Investments (DHI), a trading arm of the royal government of Bhutan, has increased a cryptocurrency portfolio without disclosing it to the public, according to a report published by Forbes. The funds came to light after the cryptocurrency contagion in 2022, when companies like Celsius and BlockFi filed for bankruptcy.
User Deposit and Withdrawal – 90 Day – Source: Celsius SoFA
Shout out to those who were able to Chapter 7 liquidate themselves at 100 cents on the dollar pic.twitter.com/nTdIVFrBXq
— Celsius Loans (@CelsiusLoans) February 20, 2023
User deposit and withdrawal – 90 days – Source: Celsius SoFA
Greetings to those who were able to settle for Chapter 7 at 100 cents
According to the report, a presentation by Celsius showed that DHI withdrew more than $65 million and deposited nearly $18 million in cryptocurrencies. BlockFi’s lawyers filed a lawsuit against DHI to reclaim the outstanding assets, alleging that the fund defaulted on its $30 million loan in March.
BlockFi alleged that DHI refused to repay the loan in full after liquidating collateral for 1,888 Bitcoin (BTC), valued at $76.5 million at the time.. On the other hand, DHI CEO Ujjwal Deep Dahal said in a Forbes statement that the matter is confidential and stressed that the “issue with BlockFi has been resolved.”
Cointelegraph attempted to contact DHI for comment but received no response.
Celsius and BlockFi were two of the most prominent bankruptcy filings within the crypto space in 2022. On July 14, cryptocurrency lending platform Celsius filed for Chapter 11 reorganization, also known as a bankruptcy filing.. Since then, the embattled cryptocurrency lender has been dealing with bankruptcy proceedings and is working on a restructuring plan. On November 28, BlockFi also filed for bankruptcy after being hit by the infamous FTX exchange crash.
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