Crypto lending firm BlockFi has announced that it will disclose information about its assets and liabilities, as well as payments received before filing for bankruptcy in November.
In a Twitter thread on January 9, BlockFi said that it had filed a filing for its shareholders detailing plans for future court filings and a summary of the bankruptcy proceedings. According to the lending firm, the company contacted 106 potential buyers shortly after its first bankruptcy hearing in November and will seek court approval of the bidding process on January 30.
BlockFi expects to file both its Schedules of Assets and Liabilities and its Statement of Financial Affairs with the Court on January 11, 2023.
—BlockFi (@BlockFi) January 9, 2023
Specifically, the company claimed that no member of BlockFi’s management team had withdrawn any cryptocurrency from the platform since October 14 or “made a withdrawal of more than 0.2 BTC in value at any time” after August 17. The company also noted that it had “increased base salaries and made retention payments” for certain employees. following a $400 million revolving credit facility from FTX US in July.
BlockFi said it planned to present its assets and liabilities, along with a statement of financial affairs on January 11. The announcement came after the US Department of Justice notified the BlockFi bankruptcy court that it had seized more than 55 million shares of Robinhood – about $450 million at press time – as part of the criminal case against FTX exchange and its executives. BlockFi was one of the parties claiming rights to the shares given certain financial ties to FTX.
Cryptocurrency companies FTX, Celsius Network, BlockFi, and Voyager Digital filed for Chapter 11 bankruptcy in 2022, with many users reporting losses totaling millions of dollars. The next public hearing for FTX’s bankruptcy case is scheduled for January 11, while BlockFi has a general hearing on January 17.
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