Cryptocurrency

BlockFi promises breakdown of finances as bankruptcy hearing proceeds

Hull Invest

BlockFi has publicly said it will provide financial breakdowns soon, following the bankruptcy hearing proceedings on Jan. 9.

so blog post BlockFi said on its website that it plans to file a report on its assets and liabilities, as well as its broader financial situation, on Wednesday, January 11.

Specifically, these filings include the company’s asset and liability schedules and financial statements. The latter statement describes transactions BlockFi made to various parties, including insiders, prior to its bankruptcy.

Apart from BlockFi’s official statement, the company’s recent bankruptcy hearing revealed various information related to the company’s finances.

Today, Coindesk quoted a statement from its attorney, Joshua Sussberg. At the hearing, Sussberg said BlockFi management had not withdrawn his crypto holdings since he filed for bankruptcy in November.

Sussberg distinguished between the actions of BlockFi executives and the actions of Celsius management. In the latter case, large number of individuals Including Celsius CEO Alex Mashinski withdrew assets shortly before the company went out of service.

Elsewhere, Reuters report BlockFi paid back $15 million to an unidentified investor last year to forestall threatened lawsuits. According to Sussberg, investor complaints were about a drop in the value of BlockFi’s stock. BlockFi considered these claims “shady,” but reached a financial settlement nonetheless.

It’s been about two months since BlockFi stopped operating. The company stopped withdrawing users on November 11th and filed for bankruptcy on November 28th. BlockFi cited the collapse of his FTX and the resulting “lack of clarity” as the reason for the failure.

According to a December court statement, crypto lending firms are believed to owe between $1 billion and $10 billion to more than 100,000 creditors.

Posted In: United States, Bankruptcy

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