Defense Accuses DOJ of Providing 'Inaccurate' Information Regarding Sam Bankman-Fried's Laptop Access
SEC's Response to Challenge Groundbreaking XRP Ruling
Former FTX Executive Ryan Salame Faces Potential $1.5B Forfeiture Following Guilty Plea
In a recent court filing on Thursday, it was revealed that the U.S. Securities and Exchange Commission (SEC) has decided to delay a $30 million fine against the insolvent cryptocurrency lender BlockFi until after investors have been reimbursed.
The remaining amount of money is derived from a $50 million fine imposed on BlockFi by the SEC as a resolution to the allegations of non-compliance with registration requirements for the offering and sale of its cryptocurrency lending product. BlockFi had reached an agreement with the regulatory authority in February 2022 but eventually filed for bankruptcy in November due to the downfall of the crypto exchange FTX.
The regulator asserted its claims should be counted as part of "general unsecured claims" in the ongoing Chapter 11 bankruptcy proceedings, but agreed to forego the payment "in order to maximize the amount that may be distributed to investors and avoid delay in such distribution," according to the agreement reached on June 22.
In November, CoinDesk reported that BlockFi, a crypto lending platform, would likely prioritize the SEC as one of its first creditors for payment, as informed by Sasha Hodder, the founder of Hodder Law—a reputable firm specializing in crypto law.
In May, a bankruptcy court judge in New Jersey ruled that BlockFi customers could receive a repayment of $300 million for funds held in custodial wallets on the platform. While the bankrupt estate has submitted a reorganization plan to the court, which is scheduled for a hearing in July, BlockFi has stated that the recovery of $1 billion in claims against the collapsed crypto enterprise FTX and its sister trading firm Alameda will have the most significant impact on fund recoveries for customers and creditors.
Source Coindesk
