BlockFi Revokes Its Reorganization Plan Statements

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Last Updated on May 23, 2023 by Bitfinsider

In a letter made public on Friday, BlockFi stated that statements regarding a bankruptcy reorganization plan should be disregarded.

The corrective letter, which was issued in response to an order from the U.S. Bankruptcy Court for the District of New Jersey, stated that the cryptocurrency lender “prematurely posted certain statements to the court proceedings, its website, and its Twitter feed on May 13, 2023, regarding a proposed plan of reorganization.

The letter stated, “We strongly urge you to disregard these communications until such time as their publication and distribution are authorized.”

The court documents reveal ongoing tensions between BlockFi and a committee of unsecured creditors formed in the aftermath of the cryptocurrency lender’s November 2018 bankruptcy filing.

The letter states that the committee opposes the reorganization proposal along with “other parties.” It also indicates disagreement over aspects of a proposed plan to liquidate and distribute funds from BlockFi’s lending platform.

“The Committee is also of the opinion that it is inappropriate for BlockFi, through its current management and professionals, to control the liquidation of BlockFi and distributions to creditors. The Committee has requested modifications to the proposal, according to the letter.

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