- Bankrupt crypto lender BlockFi has to withdraw its restructuring plan.
- The court deemed the wind-down plan premature and unauthorized.
- The court ordered BlockFi to issue a corrective letter and stop soliciting support.
Just as lenders hoped the end would come soon, the BlockFi saga took another turn. A US bankruptcy court has issued a ruling ordering crypto lender BlockFi to withdraw its restructuring plan.
New Jersey Bankruptcy Court Judge Michael B. Kaplan found the firm’s restructuring plan was unauthorized and premature. In a May 18 emergency order, the judge clarified that the initial plan was prematurely posted without court approval.
BlockFi Restructuring Plan Halted
BlockFi’s “premature” statements pertained to a wind-down plan, highlighting around $1 billion in claims against commercial counterparts. On May 13, BlockFi posted its restructuring plan on its website and social…
