The creditors’ committee of crypto lending platform BlockFi has accused the management of delaying the business restructuring process and has proposed that the court dissolve the company.
In November 2022, the firm declared Chapter 11 bankruptcy – about two weeks after the FTX and Alameda Research collapses.
BlockFi has admitted to having pending loans to the exchange and its subsidiary.
According to the lenders’ view, CEO Zac Prince and other top managers should bear legal culpability for these loans, and to avoid it the firm has kept on postponing the restructuring process, which they believe comes with the misuse of the company’s finances.
Every month the administrative costs are approximately $16 million, including the salaries of approximately 100 employees, many of whom, the complaint states, are not doing much more than “improve their golf game.”
The official creditors’ committee has demanded the company reduce its expenses, but these requests have all been denied.
At the end of May, BlockFi had spent a total of $94 million on administration and other needs.
