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- 1 The Crypto lender filed bankruptcy after the world’s third-largest crypto exchange collapsed.
- 2 In the court filing, the lender mentioned that it owes around $1.3 billion to its top 50 creditors.
The creditors of troubled now bankrupt crypto lender Blockfi have submitted a new court filing responding to the company’s current restructuring plan. According to data, Blockfi filed for bankruptcy on November 28, 2022.
On May 12, 2023, a crypto lender detailed its restructuring plan in the United States Bankruptcy Court in Trenton. According to Blockfi, selling the company might need to generate more money through which the number of creditors can be cleared off.
In the court filing, the lender mentioned that it owes around $1.3 billion to its top 50 creditors. While responding to Blockfi, its creditors said that the lender deliberately took advantage to delay the trials.
Brown Rudnick is the official law firm representing unsecured creditors in the Blockfi bankruptcy case. In the same filing, the creditor highlighted that the lender sold cryptocurrencies worth $240 million before filing for bankruptcy in quarter four of 2022.
The creditors believe that the primary reason for selling the cryptocurrency before the bankruptcy was the unprecedented collapse of the world’s third-biggest cryptocurrency exchange.
Soon after FTX’s demise, the price of numerous cryptocurrencies slumped, and investors lost billions of dollars in just a couple of hours. A week before FTX’s bankruptcy, its native token, FTT, was trading at around $24.
Blockfi Investors and Investments
According to Crunchbase data, the globally popular crypto lender has raised $1.4 billion in 14 different funding rounds. Some of the major investors of Blockfi are Akuna Capital, Valar Ventures, Three Arrows Capital, Morgan Creek Capital, Tiger Global Management, and dozens of other investors.
The New Jersey-based lending company received funding from more than 55 companies, but FTX US and Rose Park Advisor are one of the leading investors who invested the most. Last time before bankruptcy Blockfi raised $400 million in its debt financing round.
The firm has made more than 11 investments in crypto and other companies, including Supermojo, Delio, GamerGains Labs, Coinmetric, and Yellow Card(a crypto exchange product).
Earlier on January 25, 2023, TheCoinRepublic reported that BlockFi had more than $1.2 billion in assets strung with Alameda Research, the bankrupted crypto exchange co-founded by Sam Bankman.
BlockFi owes $729 million to Ankura Trust, its largest creditor. 19% of BlockFi shares are owned by Valar Ventures, a venture capital fund linked with Peter Thiel.
Compared to the previous scenario of the crypto market, the crypto market is currently in quite a good situation. As of last month, most of the top-traded cryptocurrencies marked their 90-day high.
However, according to CoinMarketCap, the global crypto market cap is $1.13 Trillion, a 1.32% decrease over the last day. The total crypto market volume over the last 24 hours is $28.85 Billion, which makes a 2.20% decrease.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
