BlockFi withdraws reorganization plan statements following bankruptcy court order

Quick Take

  • BlockFi said in a letter made public Friday that statements about a bankruptcy reorganization plan should be disregarded.
  • The development illustrates continued friction between BlockFi and its unsecured creditors. 

BlockFi said in a letter made public Friday that statements about a bankruptcy reorganization plan should be disregarded.

The corrective letter, issued following an order by the U.S. Bankruptcy Court for the District of New Jersey, stated that the crypto lender "prematurely posted certain statements to the court docket, its website, and its Twitter feed on May 13, 2023, regarding a proposed plan of reorganization.

"We urge each of you to disregard those communications until such time as the publication and dissemination of such statements are authorized," the letter said. 

The court documents illustrate continued friction between BlockFi and a committee of unsecured creditors formed in the wake of the crypto lender's bankruptcy filing last November.

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