According to Bloomberg, an investigation conducted by BlockFi's independent directors and their lawyers shows that BlockFi Inc.'s past business with FTX appears to have been legal, and the management conducted reasonable due diligence before providing loans to FTX. This investigation, which lasted for 7 months, was announced on Monday in a New Jersey bankruptcy court to support a settlement agreement for BlockFi. The agreement will resolve potential legal claims related to bankruptcy between BlockFi co-founders Zac Prince, Flori Marquez, and other executives. In exchange, BlockFi management has agreed to assist the company's lawyers in filing lawsuits against companies (including FTX and Three Arrows Capital) that led to BlockFi's collapse. BlockFi management will serve as key witnesses in lawsuits involving FTX and Three Arrows Capital, which could create $1 billion in value for creditors. Court documents show that Prince, Marquez, and other executives have also agreed to waive or reduce the recovery of their personal digital assets on the BlockFi platform and donate $2.2 million in cash to the company. The settlement must be approved by a judge.
When FTX went bankrupt in early November last year, Alameda still had $975 million in unpaid loans to BlockFi. Later that month, BlockFi filed for bankruptcy protection and blamed its bankruptcy on its relationship with FTX. BlockFi is liquidating and advancing a plan to repay customers as much as possible. The investigation by independent directors concluded that BlockFi executives had conducted reasonable due diligence before trading with Alameda and other bankrupt crypto companies. Court documents stated that BlockFi also reviewed Prince's decision-making authority. BlockFi stated in documents submitted to the court that its bankruptcy was due to ongoing fraud by FTX and Alameda. The special committee found no evidence that BlockFi directors and executives "knew, should have known, or could have known the true nature of FTX and Alameda."
Original article link: https://bitgaai.com/2023/07/12/blockfidiaozhabaogaoguanlicengzaixiangftxtigongdaikuanqianyi/