BlockFi Says It Acted ‘Prematurely’ Courting Creditor Votes

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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.

As the law continues to evolve on these matters, please note that this article is current as of date and time of publication and may not reflect subsequent developments. The content and interpretation of the issues addressed herein is subject to change. Cole Schotz P.C. disclaims any and all liability with respect to actions taken or not taken based on any or all of the contents of this publication to the fullest extent permitted by law. This is for general informational purposes and does not constitute legal advice or create an attorney-client relationship. Do not act or refrain from acting upon the information contained in this publication without obtaining legal, financial and tax advice. For further information, please do not hesitate to reach out to your firm contact or to any of the attorneys listed in this publication.

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