Bankrupt Crypto Firms FTX And BlockFi Given Green Light To Negotiate Settlement

2023-11-15 21:00

In a significant development, US Bankruptcy Judge Michael Kaplan has made a ruling to lift the stay suit, enabling the resumption of trial proceedings in the ongoing legal dispute between cryptocurrency lender BlockFi and failed crypto exchange FTX. 

According to recent reports, the decision paves the way for BlockFi and FTX to engage in mediation for finalizing claims settlements. 

Counterclaims Allowed

BlockFi, a lender operating in cryptocurrency, filed for bankruptcy in late November last year, citing various factors, including the ripple effects of FTX’s sudden collapse earlier that month. 

This triggered an automatic stay, effectively halting proceedings between the two parties. BlockFi found itself in a predicament with an estimated $355 million frozen on the crypto exchange’s platform, and it was owed an additional $671 million by FTX’s sister company, Alameda Research.

The stay has now been modified to allow the FTX Debtors to assert, defend, counterclaim, set-off, or otherwise deal with the BlockFi Claims in the FTX bankruptcy proceedings, according to a court order issued by US Bankruptcy Judge Michael Kaplan.

In late September, BlockFi’s creditors approved a bankruptcy restructuring plan to recover the assets lost to FTX and those lost when crypto hedge fund Three Arrows Capital collapsed in the summer of 2022.

As previously reported by Bitcoinist, BlockFi has successfully emerged from bankruptcy. According to the lending company’s announcement, the company’s management, advisors, and stakeholders have dedicated “extensive efforts” to achieve this milestone, distinguishing BlockFi from many other retail crypto companies in terms of recovery.

On the other hand, Sam Bankman-Fried, the founder of FTX, recently faced legal repercussions. Following a five-week trial, Bankman-Fried was found guilty on all seven counts of defrauding his customers and lenders at the beginning of this month.

FTX Transfers $24 Million Worth Of Assets To Exchanges

In recent moves, cryptocurrency exchange FTX has deposited substantial assets to other exchanges. Within the past five hours, the bankrupt exchange transferred assets worth $24 million to Kraken and OKX. 

These assets included 250,000 SOL ($13.5 million), 8.27 million MATIC ($7.41 million), and 1,500 ETH ($3.1 million). The motive behind these transfers and their implications remain undisclosed.

Moreover, FTX and its affiliate Alameda have made notable transfers totaling $438 million, comprising 42 different assets to multiple exchanges. The entities involved have not disclosed the specifics of these transfers, including their purpose, recipients, and underlying strategy.

According to the on-chain analytics platform SpotOnChain, FTX’s liquidity in SOL appears to be relatively limited. Currently, FTX holds only 3,408 SOLs, valued at approximately $179,000. This relatively small liquidity suggests potential challenges in fulfilling large-scale SOL transactions on the exchange.

However, despite the limited liquidity, the exchange and its affiliates still hold significant SOL under long-term lock-up. According to CoinGecko data, they have 42.2 million SOL, estimated at $2.19 billion, locked up until 2027 or 2028. This implies that most of these SOL assets will remain frozen and inaccessible for several years.

Featured image from Shutterstock, chart from TradingView.com 

Similar to Notcoin - Blum - Airdrops In 2024

origin »

FintruX Network (FTX) на Currencies.ru

$ 0.0007462 (+2.01%)
Объем 24H $73
Изменеия 24h: 3.78 %, 7d: 5.93 %
Cегодня L: $0.0007462 - H: $0.0007462
Капитализация $0 Rank 7418
Цена в час новости $ 0.0025809 (-71.09%)

blockfi crypto ftx trial resumption stay proceedings

blockfi crypto → Результатов: 126


Blockfi Alternatives [2022] | Crypto Loan Platforms Better Than Blockfi

Crypto lending is one of the fastest-growing financial fields and nowadays you have a myriad of lender options to explore. Blockfi is one of the most established platforms among the cryptocurrency lenders as it has backing from some of the top cryptocurrency figures and institutions like Anthony Pompliano,some of the leading companies in the industry: […] The post Blockfi Alternatives [2022] | Crypto Loan Platforms Better Than Blockfi appeared first on CaptainAltcoin.

2022-4-15 00:30


Blockfi Alternatives [2021] | Crypto Loan Platforms Better Than Blockfi

Crypto lending is one of the fastest-growing financial fields and nowadays you have a myriad of lender options to explore. Blockfi is one of the most established platforms among the cryptocurrency lenders as it has backing from some of the top cryptocurrency figures and institutions like Anthony Pompliano,some of the leading companies in the industry: […] The post Blockfi Alternatives [2021] | Crypto Loan Platforms Better Than Blockfi appeared first on CaptainAltcoin.

2021-2-26 21:03


Are Bitcoin and Ethereum Cryptocurrency Compound Interest Rate Earnings a Gamechanger?

Despite the price of premier alt-tokens such as Bitcoin still struggling to garner bullish momentum, crypto lending platform BlockFi has just announced that it will be now providing clients with the option to claim compound interest returns on investments via crypto assets such as Bitcoin or Ethereum. As per a blog post issued by BlockFi’s […]

2019-3-7 18:29


A New Bitcoin ETF Hopeful is Many Moons Away, But You Don’t Have to Wait for Bitcoin Interest Accounts Now

The dream of cryptocurrencies replacing bank just got a step closer. This Tuesday BlockFi has launched a crypto deposit account that provides compound interest. The BlockFi Interest Account (BIA) is now live and gives customers an annual interest rate of 6 percent, paid on a monthly basis in cryptocurrency. That monthly interest is then compounded […]

2019-3-7 18:19


Фото:

BlockFi Pushes for Crypto Adoption by Offering Lucrative Interest on Bitcoin, Ether Deposits

Cryptocurrency loan platform BlockFi now allows users to earn interest as high as 6. 2 percent per annum on their digital currency deposits, reports Forbes, March 5, 2019. Lucrative Interest Rate Becomes the Talk of the Town The lines between traditional financial institutions like banks and digital currencies seem to be blurring at an astounding rate.

2019-3-7 13:02


Highest Yielding Deposit Account in Finance Comes From Crypto: BlockFi’s 6% Interest

It’s no secret that crypto investors have been on a rollercoaster for years, but unfortunately this ride has been on its descending arch for the past year. Despite this, there are still plenty of ways to profit in the markets, including depositing your cryptocurrency in a high-interest account in exchange for unprecedented interest rates.

2019-3-6 03:00


Фото:

Crypto Lending Platforms: SALT, Nexo, ETHLend and BlockFi Compared

Crypto lending platforms are still in surprisingly short supply, given the size of the market opportunity. Buying the dip may have left you a little short for the rest of the year: so you could cash out, potentially missing out on those sick gainz when the SEC approves the ETF and Coinbase lists all your […] The post Crypto Lending Platforms: SALT, Nexo, ETHLend and BlockFi Compared appeared first on Crypto Briefing.

2018-9-1 17:32


Фото:

Novgorod goes to the $ 52.5 million fundraising circuit for Galaxy Digital Crypto-Lending Form

Crypto-focused merchant bank Galaxy Digital has recently led a $52.5 million fundraising round for crypto-lending firm BlockFi, according a blog post by the company July 24. Galaxy Digital CEO and founder Mike Novogratz confirmed in a tweet that he is, “excited to get into the crypto lending business.” With the new round of investment, the

2018-7-25 09:26


Крипто-стартап для лендинга BlockFi привлек $52,5 млн от Майка Новограца

Торговый банк миллиардера Майка Новограца Galaxy Digital Ventures LLC инвестировал $52,5 млн в нью-йоркский стартап BlockFi, который специализируется на выдаче криптовалютных займов. Об этом команда BlockFi сообщила в своем блоге и Twitter-аккаунте.

2018-7-25 23:00