BlockFi Creditors Take Legal Action, Push for Company Liquidation

Coinpedia
Coinpedia

28 Jun 2023 9:42 AM

Creditors of crypto lender BlockFi have submitted a petition for the company's liquidation, alleging misconduct by its management, including CEO Zac...

  • Creditors of crypto lender BlockFi have filed a petition for the company's liquidation, alleging misconduct by its management, including CEO Zac Prince.
  • The creditors claim that BlockFi is intentionally delaying the resolution of bankruptcy proceedings to protect its senior executives.
  • The lack of transparency in BlockFi's situation is enabling unfair practices and extortion tactics, according to the creditors.
  • An investigative report, previously sealed, allegedly provides evidence of fraudulent behavior by BlockFi and Zac Prince.
  • BlockFi has submitted an updated plan under Chapter 11 bankruptcy, offering potential recovery of 39% to 100% for holders of BlockFi interest accounts.

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You May Ask

What are the allegations made by the creditors against BlockFi and its management?Why do the creditors believe that BlockFi is deliberately delaying the resolution of bankruptcy proceedings?What evidence do the creditors claim to have regarding fraudulent behavior by BlockFi and Zac Prince?What recovery options are being offered to holders of BlockFi interest accounts under the bankruptcy plan?What factors led to BlockFi filing for Chapter 11 bankruptcy protection?

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