BlockFi’s Bold Move
In a daring attempt to be transparent and regain trust, BlockFi is set to disclose its assets and liabilities as well as details surrounding payments made prior to its swan dive into bankruptcy last November. This watchdog-style parade of financial revelation is not just for show; it’s their way of saying, “Hey, we’re still here, and we want you to know what’s going on!”
Jan. 9 Twitter Thread Highlights
On January 9th, BlockFi took to Twitter (because, where else?) to share a thread outlining the firm’s intentions for future court filings and its strategy moving through bankruptcy proceedings. In a plot twist that could rival a soap opera, BlockFi announced that they had reached out to a whopping 106 potential buyers since their first court appearance in November.
A Glimpse at the Future
As they gear up to file key financial documents with the court on January 11, 2023, BlockFi is looking at a potential bidding process that’s like a game of musical chairs but with lots of money involved. Expect the court’s seal of approval for this process on January 30. Fingers crossed for a happy ending!
Management and Withdrawal Safeguards
In a bid to clear the air, the company claims that none of the management team has been pulling crypto from the platform since October 14. And as for large withdrawals? They haven’t seen a single one over 0.2 BTC since mid-August! Talk about buttoning up the hatches. Meanwhile, BlockFi has opted to boost base salaries and made retention payments to staff amidst the chaos, fueled partially by a $400 million credit facility from FTX US.
Seized Assets and the Bigger Picture
Part of BlockFi’s story includes a significant plot twist involving the U.S. Department of Justice, which has seized over 55 million shares of Robinhood—worth around $450 million. This seizure is tied to the ongoing saga of the FTX criminal case, leaving BlockFi, along with others in the crypto circus, scrambling to stake their claims to these assets.
Other Players in the Bankruptcy Game
The BlockFi situation isn’t occurring in isolation, as it finds itself among other crypto giants like FTX, Celsius Network, and Voyager Digital—all of whom filed for Chapter 11 bankruptcy in 2022. Many users here are still feeling the ripple effects, holding their collective breaths as BlockFi’s omnibus hearing looms on January 17.
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