BlockFi Says It Acted ‘Prematurely’ Courting Creditor Votes
Bankrupt crypto lender BlockFi followed a judge’s order when it walked back public statements it made urging creditors to support a newly proposed reorganization plan that drew the ire of its creditors committee, which accused the firm of a “broad and illegal solicitation campaign” for a plan they oppose.
The plan in question was announced on May 12, but the creditors committee fired back within days. The bankruptcy judge overseeing the matter ordered BlockFi to issue a letter clarifying the bankruptcy procedures on Friday and acknowledge that it had acted “prematurely” by encouraging creditors to accept the plan prior to gaining court approval.
BlockFi is represented by Michael D. Sirota and Warren A. Usatine.
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