BlockFi to Disclose Financial Breakdown
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An editor at Coincrop
10 Jan 2023 | 3 min read
lockFi made significant progress in its Jan 9th bankruptcy hearing and has declared the imminent publication of a comprehensive financial account. The company plans to disclose reports on Wednesday, January 11 which will detail their assets, liabilities, as well as overall fiscal standing.
Specifically, the company will submit Schedules of Assets and Liabilities as well as a Statement of Financial Affairs that includes all transactions BlockFi conducted with various parties such as insiders prior to bankruptcy.
In addition to BlockFi's official statement, the company's most recent bankruptcy proceeding divulged various other financial facts.
In a recent interview with Coindesk, Joshua Sussberg, the lawyer for BlockFi's firm declared that since the company filed for bankruptcy in November of last year, none of its executives have liquidated any crypto holdings.
Sussberg drew a stark contrast between the behavior of BlockFi's executives and that of Celsius' leaders. Just before services were suspended, several high-profile figures including Alex Mashinsky - CEO at Celsius - withdrew their assets from the company.
As reported by Reuters, BlockFi was presented with a potential lawsuit from an unidentified investor last year due to their concerns regarding the diminishing value of its equity. Though the company disagreed with these complaints, they still decided to settle for $15 million financially instead of taking it to court. Despite feeling that the claims were "specious," BlockFi chose this resolution as a preventative measure.
On November 11th, BlockFi suspended its services and stopped user withdrawals, and then initiated bankruptcy proceedings at the end of the month on the 28th. It was revealed that BlockFi had gone under due to FTX's collapse, which created a "lack of clarity" in their operations.
Recent court documents in December suggest that the crypto lending company could be indebted to over 100,000 creditors with a total amount due ranging between $1 billion and $10 billion.
MikeAn editor at Coincrop
Mike is a Coincrop staff writer based in the UK, covering the best rates for cryptocurrency earning and borrowing products. When not at work, he's likely putting his latest car project back together.
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