Crypto Lender BlockFi Ordered to Withdraw Unapproved Reorganization Plan Shared 'Prematurely'

Crypto Lender BlockFi Ordered to Withdraw Unapproved Reorganization Plan Shared ‘Prematurely’


Bankrupt crypto lender BlockFi has withdrawn statements relating to a wind-down plan published May 13 following an order from a U.S. bankruptcy court, court filings show.

The estate was required to issue a “corrective letter” clarifying that the documents were posted prematurely and without court approval, an emergency order issued May 18 by New Jersey Bankruptcy Court Judge Michael B. Kaplan said.

The documents in question had said some $1 billion in claims against commercial counterparts like collapsed crypto exchange FTX and its trading arm Alameda will be the “largest driver” in the success of getting creditors their money back. “The purpose of the disclosure statement is to

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