- SEC has temporarily waived its $30 million debt claim against BlockFi, the bankrupt crypto lending platform.
- The debt is related to a $50 million fine imposed by the SEC on BlockFi for selling unregistered crypto loan products.
- BlockFi has filed for bankruptcy and has presented a restructuring plan for the upcoming court hearing in July.
Meta Excerpt: The Securities and Exchange Commission (SEC) has decided to temporarily waive its $30 million debt claim against BlockFi, the crypto lending platform that recently filed for bankruptcy. This debt is a result of a $50 million fine imposed by the SEC for selling unregistered crypto loan products. BlockFi has filed for bankruptcy and has presented a restructuring plan for the upcoming court hearing in July.
SEC Temporarily Waives $30 Million Debt Claim Against BlockFi
The Securities and Exchange Commission (SEC) has made an important application to the court regarding BlockFi, the crypto lending platform that recently filed for bankruptcy. In its application, the SEC stated that it has temporarily waived its claim for $30 million from BlockFi until the platform completes its payments to its users.
Debt Originating from SEC’s $50 Million Fine
The $30 million debt is a result of a $50 million fine imposed by the SEC on BlockFi for selling unregistered crypto loan products. BlockFi has already paid $20 million of the fine but has been unable to pay the remaining $30 million.
BlockFi’s Bankruptcy and Restructuring Plan
BlockFi filed for bankruptcy in November 2022, following the collapse of the crypto exchange FTX. The platform has presented a restructuring plan for the upcoming court hearing in July. BlockFi claims to have more than $1 billion in debt owed to the crypto exchange FTX and its subsidiary Alameda Research.
Despite the debt claim, former SEC official Howard Fischer stated that the regulatory agency may not be as aggressive in recovering the money as it has been in other cases.
