BlockFi plans to file assets and liabilities for bankruptcy case on Jan. 11

Crypto lending firm BlockFi has announced it will disclose information on its assets and liabilities as well as payments received prior to its bankruptcy filing in November.

In a Jan. 9 Twitter thread, BlockFi said it had filed a presentation for its stakeholders detailing plans for future court filings and a rundown of the bankruptcy proceedings. According to the lending firm, the company reached out to 106 potential buyers shortly after its first bankruptcy hearing in November and will ask for the court’s approval regarding the bidding process on Jan. 30.

Specifically, the company claimed that no members of the BlockFi management team had withdrawn any crypto from the platform since Oct. 14 nor “made a withdrawal greater than 0.2 BTC in value at any time” after Aug. 17. The firm also noted it had “increase[d] base salaries and ma[de] retention payments” for certain employees following a $400-million revolving credit facility from FTX US in July.

BlockFi said it planned to file its assets and liabilities, along with a statement of financial affairs on Jan 11. The announcement followed the United States Department of Justice notifying the court handling the BlockFi bankruptcy that it had seized more than 55 million shares of Robinhood — roughly $450 at the time of publication — as part of the criminal case against crypto exchange FTX and its executives. BlockFi was one of the parties claiming rights to the shares given certain financial ties to FTX.

Related: BlockFi files motion to return frozen crypto to wallet users

Crypto firms FTX, Celsius Network, BlockFi and Voyager Digital all filed for Chapter 11 bankruptcy in 2022, with many users reporting losses totaling in millions of dollars. The next public hearing for FTX’s bankruptcy case is scheduled for Jan. 11, while BlockFi has an omnibus hearing on Jan. 17.

Source: Read Full Article