In a recent tweet, BlockFi provided a presentation highlighting the progress since its first-day hearing.
The presentation stated that BlockFi has contacted 106 potential buyers as part of its marketing and sale process. It also revealed that BlockFi’s management team did not withdraw assets since October 2022, with Kirkland & Ellis' Joshua Sussberg noting,
"I think the important takeaway here is that there was no situation where insiders were pulling money off the platform on the eve of or anywhere near this bankruptcy file ... So this is not the Celsius case where management extracted value on the eve of the file.”
BlockFi's presentation referred to a $400M loan issued from FTX US in July 2022. BlockFi claimed that although the transaction stabilized the firm's liquidity, it led to BlockFi employees losing their equity value.
As a result, BlockFi’s board of directors agreed to provide up to 50% increments to certain employees, with the plan falling through after BlockFi filed for bankruptcy protection on November 28, 2022.
BlockFi seeks to obtain court approval for its Key Employee Retention Plan. The firm will exclude insiders from accessing the benefits proposed under the KERP.
BlockFi also announced its plans to provide details on liabilities, assets, and payments made to insiders and key parties on January 11. The bankrupt lender will provide details on filing proof-of-claims at an “appropriate time,” adding that it has yet to set any deadlines for the claims process.
Furthermore, BlockFi will file a motion for the approval of its bidding procedure at the January 30 omnibus hearing.
Written by
Ayush Pande
Ayush Pande is a hardware, gaming, and crypto writer based in India. He's a tech enthusiast who's fascinated by the potential of blockchain technology.
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