<\/p>\n
FTX objected to BlockFi\u2019s bankruptcy plan Wednesday, claiming it \u201cstill suffers from certain fundamental shortcomings.\u201d<\/p>\n
FTX\u2019s attorneys believe that \u201cthe Plan unfairly discriminates against the FTX Claims in certain respects\u201d and have asked the Court to deny the plan.\u00a0<\/p>\n
The opposition comes after BlockFi claimed it fell victim to FTX\u2019s former CEO<\/a> Sam Bankman-Fried actions. FTX is accused of misappropriating and commingling customer funds with Alameda Trading, its sister firm, in a scheme to defraud investors.<\/p>\n FTX<\/a> is attempting to recover both loan repayments and collateral from the bankrupt crypto lender.<\/p>\n \u201cThe FTX Debtors do not seek to impede the BlockFi Debtors\u2019 efforts to return value to their creditors, but, in the absence of a consensual resolution, must ensure any plan is fair to the FTX Debtors\u2019 creditors, who are the beneficiaries of the FTX Claims,\u201d the Wednesday filing said.<\/p>\n FTX argued in the Wednesday filing that the debtors for both BlockFi<\/a> and FTX had attempted to work \u201cconstructively\u201d to reach a proposal \u201cto fairly and efficiently resolve the complex issues between the parties\u201d due to the \u201cdueling debtor\u201d claims.\u00a0<\/p>\n A July report from BlockFi\u2019s committee of unsecured creditors<\/a> found that BlockFi was aware of the risks associated with lending to Alameda.\u00a0<\/p>\n \u201cBlockFi\u2019s reliance on Alameda\/FTX led to foreseeable (actually foreseen) losses of a staggering quantum,\u201d the report stated. FTX and Alameda defaulted on around $680 million in collateralized loan obligations.<\/p>\n Furthermore, BlockFi\u2019s credit risk team allegedly drafted a memo warning that Alameda \u201chad unaudited financials\u201d and \u201cwas offering volatile collateral.\u201d<\/p>\n However, in an August filing, BlockFi argued that FTX and Alameda\u2019s \u201cscheme included fraudulently inducing BlockFi to loan over $1 billion worth of digital assets deposited on the BlockFi platform to Alameda Research.\u201d<\/p>\n Get the day\u2019s top crypto news and insights delivered to your email every evening.\u00a0Subscribe to Blockworks\u2019 free newsletter<\/a>\u00a0now.<\/strong><\/p>\n Want alpha sent directly to your inbox? Get degen trade ideas, governance updates, token performance, can\u2019t-miss tweets and more from\u00a0Blockworks Research\u2019s Daily Debrief<\/a>.<\/strong><\/p>\n Can\u2019t wait? Get our news the fastest way possible.\u00a0Join us on Telegram<\/a>\u00a0and follow us on\u00a0Google News<\/a>.<\/strong><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":" FTX objected to BlockFi\u2019s bankruptcy plan Wednesday, claiming it \u201cstill suffers from certain fundamental shortcomings.\u201d FTX\u2019s attorneys believe that \u201cthe Plan unfairly discriminates against the FTX Claims in certain respects\u201d and have asked the Court to deny the plan.\u00a0 The opposition comes after BlockFi claimed it fell victim to FTX\u2019s former CEO Sam Bankman-Fried actions. […]<\/p>\n","protected":false},"author":2,"featured_media":156029,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[230,225,221,227,226,228,229,60,223,224,222],"class_list":["post-156028","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","tag-brave","tag-coinbase","tag-crypto","tag-decentralised","tag-decentralized","tag-decentralized-exchange","tag-erc-20","tag-featured","tag-meme-coin","tag-robinhood","tag-solana"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/156028","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=156028"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/156028\/revisions"}],"predecessor-version":[{"id":156035,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/156028\/revisions\/156035"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/156029"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=156028"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=156028"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=156028"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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