BlocksInform
Failure crypto blockfi lender appears on the right path to sell certain assets after a bankruptcy judge in New Jersey expressed approval of the plan as part of chapter 11 insolvency proceedings to restore creditors' funds.
Under a proposal put in the court of bankruptcy Monday, bidders for crypto-extracting blockfi assets would have until February. Twenty to bid, with a bid the next week.
"I think this is an achievable and certainly quick and effective process that is being considered," said Michael Kaplan, after the withdrawal of the objections of the United States government and a committee representing the creditors. "We will all hope to achieve important results."
The sale would be the first in a number of potential auctions, lawyers for BlockFi testified in court.
"we have received substantial market interest in certain packages of assets and expect to receive even more offers," said Kirkland law firm Francis Petrie. 9 the statutory deposit cited 35 potential counterparties. Given the practical realities of the debtor situation and the ongoing volatility in the cryptocurrency market, we must act quickly to safeguard the value of our assets."
BlockFi's attempts to grab hundreds of millions of shares in the Robinhood (HOOD) markets, however, took a new direction as a result of parallel judicial proceedings in Antigua, Court in New Jersey has been notified.
"On 27 January, the Antigua Court granted Sam Bankman-Fried's request to stay the liquidation proceedings," declared Richard Kanowitz of Haynes Boone, also a blockfi representative. "They have authorized the appeal, to be filed within 21 days."
The 56 million shares, with a current value of around $577 million, are the subject of a complex tussle involving BlockFi, failed crypto exchange FTX, FTX founder Sam Bankman-Fried, the Antigua-based liquidators of the shell company that nominally owned the shares and the U.S. Department of Justice (DOJ).
According to court filings earlier in January, the shares have been seized by the DOJ, which is investigating Bankman-Fried, who has pleaded not guilty to charges including wire fraud. Bankman-Fried has also said he was willing to give the shares to FTX customers, though in court he opposed a related bid by FTX to claim ownership.
Dependent on FTX for a $400 million line of credit, BlockFi filed for Chapter 11 bankruptcy protection on Nov. 28, shortly after FTX did the same. On Friday, Kaplan approved a $10 million BlockFi bonus pot intended to keep staffers from leaving the company.
