BlockFi Responds to FTX’s Claims
BlockFi, the bankrupt crypto lender, has objected to FTX’s claims in its ongoing bankruptcy proceedings. BlockFi argues that FTX’s claims are baseless and should not take precedence over BlockFi’s customers and creditors. BlockFi has requested that the court prioritize its clients and other creditors above FTX. One of the major claims made by FTX is regarding an Option Agreement, where FTX alleges that BlockFi should pay damages for misrepresentations and improper disclosures. However, BlockFi has objected to all of FTX’s claims, stating that they lack sufficient evidence.
BlockFi’s Creditors
BlockFi owes over $1 billion to more than 100,000 creditors, including Ankura Trust Company and West Realm Shires Inc. The crypto lender also has a $30 million unsecured claim from the SEC, which has agreed to waive the fine until BlockFi repays its other creditors.
Recovery Plan
BlockFi recently received conditional approval from the court to move forward with its repayment plan. The first step of the plan is to recover funds from its creditors, including FTX, Emergent, and Alameda.
Hot Take
BlockFi is taking a strong stance in its bankruptcy proceedings, prioritizing its customers and creditors over FTX. The company is objecting to FTX’s claims and requesting equitable subordination to ensure fair treatment for its stakeholders. The approval of BlockFi’s repayment plan is a positive step towards resolving the bankruptcy and repaying its creditors.
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