WASHINGTON (Sputnik) – Cryptocurrency firm Blockphi is head of fellow cryptocurrency player FTX in an attempt to recover collateral the company claims it owes, according to court documents filed in U.S. bankruptcy. I am suing an organization associated with Sam Bankman Freed. New Jersey District Court.
BlockFi has filed a lawsuit against Bankman-Fried’s Emergent Fidelity Technologies, demanding that it provide an unspecified amount of collateral it claims it owns.
The lawsuit seeks a court order directing Emergent to immediately transfer the collateral to a neutral party and, ultimately, to BlockFi, the filing said.
The filing comes hours after the crypto lender followed FTX procedures and filed for bankruptcy following the recent crash in cryptocurrency prices. A Chapter 11 filing effectively gives BlockFi’s creditors a better chance to come up with a repayment plan.
According to reports, BlockFi’s top 10 creditors owe about $1.2 billion.
Earlier this month, Bankman-Freed’s cryptocurrency business filed for bankruptcy after rival Binance withdrew its acquisition plans.
Neither retail nor institutional investors are expected to take anything back from the FTX bankruptcy proceedings, Gary Korolev, CEO of financial services firm Sovereign Wealth Management, told Sputnik.
https://sputniknews.com/20221129/blockfi-sues-bankman-fried-entity-to-recover-collateral-after-bankruptcy—filing-1104804684.html BlockFi Sues Bankman-Fried Entity, Recovers Collateral After Bankruptcy – Filing