According to a legal document submitted by FTX on Wednesday, FTX opposes BlockFi's proposed bankruptcy plan, stating that the plan involves disputed transactions totaling over $1 billion, unfairly diminishing its substantial claims against BlockFi. FTX had previously bailed out BlockFi and subsequently filed for bankruptcy in November last year.



BlockFi's bankruptcy plan was set to be discussed at a hearing in New Jersey on July 13th, but it faced opposition from hedge fund 3AC Capital and the U.S. SEC. 3AC claims that BlockFi owes them over $220 million and protests that they have not been given a chance to defend against fraud allegations. The SEC, on the other hand, argues that the proposed terms for releasing BlockFi and its management are too vague and broad. (CoinDesk)



Earlier reports stated that creditors of BlockFi have applied for the liquidation of the company, alleging that the management, including CEO Zac Prince, has been consistently delaying the progress of the bankruptcy proceeding and engaging in fraudulent and extortionate activities. BlockFi has a monthly operating cost of $16 million and is still paying salaries to over 100 employees, many of whom are described as "doing very little except playing golf."



While creditors have filed their application, BlockFi has submitted an updated plan under Chapter 11 of the bankruptcy law. A revised disclosure statement indicates that under the bankruptcy plan, holders of BlockFi interest accounts are expected to recover between 39% and 100% of their assets, and if the assets are simply liquidated, between 36% and 60% can be recovered. The total outstanding debt of BlockFi interest accounts amounts to approximately $1 billion.