History with BlockFi
Last fall, the site filed for bankruptcy. Traditionally, Chapter 11 of the US Code was used. This happened 14 days after the fall of the FTX cryptocurrency exchange and Alameda Research. Earlier, representatives of the site admitted that it, together with its subsidiary, has obligations to the company that it has not repaid.
According to the creditors, the leading managers of the site, including SEO Zach Prince, are obliged to bear legal responsibility for the issuance of these loans. To prevent this from happening, the leading employees of the site are delaying the restructuring.
The statement says that the procedure has an unjustified "burning" of the debtor's assets. Every month, administrative expenses reach about $ 16 million. At the same time, this also includes the wages of hundreds of employees.
The lawsuit states that most of them did nothing. However, they improved their golf game. The Committee has asked them many times to reduce costs. However, such requests were rejected, as well as other types of cooperation.