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FTX, Alameda Settle with BlockFi, Set to Pay $874 Million

Bankrupt firms BlockFi and FTX have announced an agreement “in principle” to settle their disputes. According to a March 6 court filing, FTX has committed to paying up to $874.5 million to BlockFi, marking a potential resolution to a long-standing legal battle between the two entities. $874 Million Settlement Under the agreement terms, subject to court approval, BlockFi stands to receive compensation that includes an allowed customer claim of $185.2 million against FTX.com....

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BlockFi and 3AC Resolve Counterclaims in Bankruptcy Settlement, but There’s a Catch

A settlement between defunct crypto lending company BlockFi and the collapsed hedge fund Three Arrows Capital (3AC) was approved by a US bankruptcy court on February 7. The specific terms of the settlement, though, remain confidential. According to the official document, the approval effectively resolved any counterclaims between the parties. Judge Kaplan of the New Jersey Bankruptcy Court, in the Tuesday hearing, expressed that it doesn’t make sense to demand disclosure of...

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Crypto Lender BlockFi Begins Shutdown, Asks Clients to Submit Withdrawal Request

BlockFi revealed that it has emerged from bankruptcy court, having received approval for its reorganization plan from all relevant stakeholders. Nearly 11 months after it first declared bankruptcy, the crypto lender BlockFi has now officially begun the process of winding down its operations. In line with this, the company has asked its wallet users to tender their withdrawal requests on its website to claim their funds. However, there is a December 31 deadline for the requests. In the...

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Ex BlockFi CEO Discusses Loans to Alameda in SBF Trial

Zac Prince – former CEO of collapsed crypto lending firm BlockFi – took the stand during Sam Bankman-Fried’s trial in New York City on Friday. The CEO discussed the size of his loans to the exchange’s sister trading desk, Alameda Research, and what exactly he knew about the state of their balance sheet as one of its major creditors. How BlockFi Went Bust Per testimony summarized by Inner City Press, Prince said BlockFi lent out “five to ten billion dollars” overall, of which...

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Coinbase Launches Crypto Lending Services to American Investors (Report)

The leading cryptocurrency exchange – Coinbase – has reportedly started offering crypto loans to US institutional investors.  The move could signal the company’s willingness to strengthen its position in America despite the regulatory uncertainty and the issues with local watchdogs. Recall that the US SEC filed a lawsuit against Coinbase in June, accusing the trading venue of breaching several rules and offering trading services with unregistered securities. Capitalizing on...

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BlockFi’s Disclosure Statement Receives Conditional Approval By US Bankruptcy Court

Bankrupt crypto lender, BlockFi revealed that the US Bankruptcy Court for the District of New Jersey has conditionally approved its disclosure statement. The development essentially demonstrated that the reorganization process of BlockFi continues to make gradual progress eight months after filing the voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code. In an official statement on August 2nd, Mark Renzi – BlockFi’s Chief Restructuring Officer,...

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BlockFi’s Bankruptcy Plans Faces Stiff Opposition From FTX

There’s no respite for BlockFi as the bankrupt crypto lender struggles to pay its creditors and customers. BlockFi has brought forward several proposals since sliding into bankruptcy last year owing to the market turmoil. However, FTX’s latest legal filing poses a hurdle for the now-defunct company as it accuses BlockFi of abusing the planning process. FTX said that the newly proposed plan attempts to avoid substantial claims against BlockFi. “Yet the BlockFi Debtors believe...

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US SEC Agrees to Forego BlockFi’s $30M Fine Until Investors are Repaid

The United States Securities and Exchange Commission (SEC) has given up its slot as one of the first creditors to be repaid by the insolvent crypto lending platform BlockFi. The move comes as the SEC is facing intense pressure from a legal battle against the cryptocurrency exchange, Binance. U.S. SEC Forfeits Front-Row Seat for Investors Earlier last year, BlockFi agreed to a $100 million settlement imposed by the U.S. SEC for failing to register its crypto lending products...

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BlockFi Initiates Legal Action against State Commission for Not Accepting Its Surrendered License

Instead of accepting or acknowledging the license return, the commission insists that BlockFi undergo administrative proceedings. The bankrupt crypto exchange was left with no option but to sue Jorge Perez, the Connecticut banking commissioner. BlockFi’s attempts to return its Connecticut money transmitter license have been futile, as the state regulator has repeatedly refused to respond. Instead of accepting or acknowledging the license return, the commission insists that BlockFi undergo...

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