BlockFi Creditors Hotly Controversy About Poor Management Of The Company
The creditors dismissed BlockFi’s claim that it was a victim of FTX and Alameda as a false case narrative, blaming the company’s downfall on bad management choices and, later, restructuring agents. The creditor’s committee said that in the days after the FTX collapse, when crypto markets crashed, BlockFi transferred around $240 million in crypto into fiat, resulting in severe financial losses and probable tax concerns for clients.
BlockFi subsequently transferred the money as well as an extra $10 million into Silicon Valley Bank (SVB), which went bankrupt later that year. But, no one at BlockFi, including the restructuring team, followed through on this, and no bond was issued, according to the creditors. The creditors claimed that BlockFi also used consumer cash to obtain a $30 million insurance policy for its directors and executives. Bitcoin has risen more than 60% from the November 2022 lows, and creditors claim that approximately $100 million in value was lost as a result of the decision to liquidate then. A significant chunk of this document has been deleted, notably critical passages.
Source
https://t.me/DeFi_Ethereum
