BlockFi Bankruptcy: Still Owes SEC $30 Million Fine, SBF Sued: Hand Over Robinhood Stock

As BlockFi officially declares bankruptcy restructuring, more details emerge. BlockFi has sued SBF, demanding the turnover of Robinhood stocks, and alleges that SBF had been privately attempting to sell Robinhood stocks through the Signal App in the days leading up to the bankruptcy filing at FTX.

BlockFi Owes Approximately $1.3 Billion to Top 50 Creditors

According to the documents filed by BlockFi for bankruptcy restructuring, it has over 100,000 creditors, with debts totaling around $1.3 billion to the top 50 creditors. The largest creditor, Ankura Trust Company, is owed approximately $730 million, followed by the second largest creditor FTX US at $275 million, the third largest creditor at $48.56 million, and the fourth largest creditor, the U.S. Securities and Exchange Commission (SEC), at $30 million in fines.

BlockFi currently holds only $256.9 million in cash, and its platform services remain suspended.

BlockFi Sells $239 Million in Cryptocurrency, Plans to Lay Off Nearly 250 Employees

According to a report by Bloomberg, court documents show that the cryptocurrency lending company BlockFi has sold approximately $239 million in cryptocurrency to cover expected bankruptcy costs and warned that nearly 250 employees may lose their jobs, accounting for about two-thirds of its over 370 employees.

Furthermore, BlockFi intends to reorganize in bankruptcy court rather than sell, but is open to any transaction that would maximize returns for creditors, stating that "what users ultimately get will largely depend on whether other cryptocurrency participants fulfill their contracts with BlockFi and the outcome of the bankruptcy of the FTX Group."

This article is authorized for reprint by Foresight News, a Chinese content platform in the Web3 vertical domain that adheres to the basic principles of "objectivity and neutrality," dedicated to creating a Chinese gateway to the Web3 world.