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The approval is seen as a milestone moment for BlockFi's over 100,000 creditors, who have been long awaiting repayment. The customers of bankrupt cryptocurrency lending platform BlockFi are one step closer to being paid out after a United States Bankruptcy Court in New Jersey approved its liquidation plan. Bankruptcy Judge Michael A. Kaplan approved BlockFi's third amended Chapter 11 plan in a Sept. 26 court hearing, a filing on the same day shows. Sept. 26 court filing in the bankruptcy case of BlockFi. Source: Kroll The amount of repayment received by BlockFi's unsecured creditors will largely depend on whether BlockFi succeeds in its legal battle against FTX and other bankrupt cryptocurrency firms. BlockFi's liquidation plan was approved after the firm settled a long-fought dispute with the creditors committee over the company’s senior management. The now bankrupt lending platform blamed FTX's collapse for its own failure despite the creditor's committee c...

BlockFi argues its creditors, not FTX’s, are the “ultimate victims” of FTX’s alleged fraud. Bankrupt cryptocurrency lender BlockFi is trying to block attempts by the similarly bankrupt FTX and Three Arrows Capital (3AC) that aim to retrieve hundreds of millions of dollars to pay back their creditors. BlockFi claimed in an Aug. 21 filing to a New Jersey bankruptcy court that its own creditors shouldn’t be pushed to the back of the line because FTX’s creditors were harmed by the exchange allegedly misappropriating $5 billion BlockFi lent it. “FTX seeks to recover on over $5 billion of claims filed against the BlockFi estates at the direct expense of the ultimate victims of FTX’s fraud: BlockFi’s clients and other legitimate creditors.” “To prevent further injustice to the creditors of BlockFi’s estates, the Court should disallow the FTX Claims under the doctrine of unclean hands,” BlockFi added. FTX also provided $400 million to BlockFi in June 2022 in addition to buying BlockFi equity ...

Core Scientific said favorable market conditions have increased its liquidity position and its bankruptcy restructuring plan has been revised. A restructuring plan for bankrupt Bitcoin (BTC) miner Core Scientific could be finalized by September and it expects to exit proceedings with an additional $46 million due to recent favorable market conditions. In a May 22 filing in a Texas Bankruptcy Court, Core Scientific’s lawyers said its liquidity position has improved considerably since it filed for bankrupt cy and as a result, it plans to file a reorganization plan in the near future. The plan is currently being negotiated with key stakeholders, and according to the filing, the firm is “seeking to build as much consensus as possible” about how a new Core Scientific would look after emerging from its bankruptcy proceedings. The next steps in Core Scientific’s Chapter 11 proceedings. Source: Stretto A Chapter 11 bankruptcy allows a firm to continue operating until stakeholders are able t...

Richard Branson’s aerospace company Virgin Orbit Holdings (VORB.O) has filed for Chapter 11 Bankruptcy . The company did not secure sufficient funding to recover from a January satellite launch failure. The Long Beach, California-based corporation filed the case in the District of Delaware Bankruptcy Court. After announcing the layoffs of around 85% of its 750 employees last week, the company is looking to sell all of its assets. According to the statement, the company had total debt of $153.5 million as of Sept. 30 and assets of around $243 million. Virgin Orbit CEO Dan Hart stated, “We believe that the Chapter 11 process represents the best path forward to identify and finalize an efficient and value-maximizing sale.” Over 75% of the launch company was owned by Branson’s Virgin Group, which reportedly invested over $1 billion in the business, including $60 million in secured loans since November 2022. With a 17.9% interest in Virgin Orbit, Mubadala, the sovereign wealth fund of...

Bitcoin and crypto react bullishly to news that the Fed is providing liquidity again in the wake of Silicon Valley Bank failing and Signature Bank being closed. Bitcoin (BTC) begins a new week with a bullish surge above $22,000 as the Federal Reserve injects liquidity into the United States economy. In a move which can rival any classic Bitcoin comeback, BTC/USD is up a full 15% off the two-month lows seen on March 10. The volatility — and at least temporary relief for bulls — is all due to events in the U.S. after the failure of one bank and the forced halting of another’s operations. Silicon Valley Bank and Signature Bank are the latest victims in a brutal year for financial institutions under the Fed’s rising interest rates — will the trend continue? Despite Signature being crypto focused and a major on-ramp from fiat, crypto markets have so far seen no reason to abandon optimism at the prospect of the Fed providing fresh money. Not everyone, however, believes that this constitutes...

The wallets were thought to be inaccessible following the death of the exchange's founder in 2018, as he had sole responsibility for the wallet's private keys. Five wallets tied to the defunct Canadian cryptocurrency exchange QuadrigaCX, previously thought to be inaccessible, have just been spotted moving around $1.7 million worth of Bitcoin after years of dormancy . Crypto researcher ZachXBT alerted the crypto community in a Twitter post on Dec. 19, highlighting the five wallets have transferred around 104 Bitcoin (BTC) on Dec. 17 to various wallets. Blockchain records show the wallets had not sent BTC since at least April 2018. Five wallets attributed to QuadrigaCX unexpectedly moved ~104 BTC on Dec 17 for the first time in years . 1ECUQLuioJbFZAQchcZq9pggd4EwcpuANe 1J9Fqc3TicNoy1Y7tgmhQznWrP5AVLXj9R 1MhgmGaHwLAvvKVyFvy6zy9pRQFXaxwE9M 1HyYMMCdCcHnfjwMW2jE4cv9qVkVDFUzVa 1JPtxSGoekZfLQeYAWkbhBhkr2VEDADHZB — ZachXBT (@zachxbt) December 19, 2022 Once Canada's largest cryp...

The bankruptcy judge has given approvals to subpoenas aimed at Three Arrows Capital’s leadership, while a new Terra Luna conspiracy has been floated. A federal judge overseeing Three Arrows Capital’s (3AC’s) Bankruptcy proceedings has signed an order approving subpoenas to be delivered to 3AC’s former leadership, including co-founders Su Zhu and Kyle Davies. The subpoenas require the founders to give up any “recorded information, including books, documents, records, and papers” in their custody that relates to the firm’s property or financial affairs. The infamous hedge fund, worth $10 billion at its peak, filed for Chapter 15 bankruptcy on Jul. 1 with its troubles tied up in too much leverage and the collapse of Terra Luna (LUNA), known now as Terra Classic (LUNC), and its algorithmic stablecoin formerly known as TerraUSD (UST). Since then, the liquidators — advisory firm Teneo — have been trying to hunt down the firm’s assets and pin down the 3AC's co-founders. The latest order...

On Thursday, the US Department of Justice’s bankruptcy watchdog called for an independent probe into the collapse of the FTX Group. It said that a neutral party should investigate the crypto exchange for allegations pertaining to “fraud, dishonesty, incompetence, misconduct, and mismanagement.” The US Trustee—that is a part of the Department of Justice that oversees Bankruptcy court—has asked FTX ’s Bankruptcy judge to appoint an examiner to look into the company’s insolvency proceedings. The examiner would publish a public report on FTX ’s collapse and veer into allegations of wrongdoing.  US Trustee Andrew Vara wrote in a court document,  “An examiner could—and should—investigate the substantial and serious allegations of fraud, dishonesty, incompetence, misconduct, and mismanagement” by FTX . The official document also outlined that the examiner should also probe “the circumst...