BlockFi Granted Extension to Submit Bankruptcy Exit Plan

BlockFi, a leading lender of digital assets, filed for bankruptcy in November 2022, and has been granted an extension until May 15 to submit an exit plan, according to a New Jersey bankruptcy judge. The crypto firm is exploring a potential sale of company assets or the possibility of getting an outside backer to support a restructuring deal, as per the company’s lawyer Joshua Sussberg.

The bankruptcy code requires debtors to propose a Chapter 11 plan within the first 120 days of filing, which meant that BlockFi was required to present a plan by March 27. However, on March 21, the company filed a request to prolong the deadline for its Chapter 11 plan by 90 days to June 26. The company’s lawyers argued that “much work remains” due to the scale and complexity of the Chapter 11 cases. Judge Michael Kaplan, the bankruptcy judge handling the case, deemed it worthwhile to extend the deadline to ensure the smooth continuation of the case, albeit a shorter extension than the one requested by BlockFi.

The company is estimated to owe up to $10 billion to over 100,000 creditors. A committee of BlockFi customers argued they should be allowed to take control of the bankruptcy case so that cryptocurrency held on the platform can be returned to creditors immediately. Committee lawyer Robert Stark told Kaplan that BlockFi creditors aren’t sophisticated lenders, but individual mom-and-pop retail customers, “many of whom have lost their life savings.” The committee cited the lack of a workable business for reorganization and the potential sale of the platform, which Stark referred to as a “bundle of sticks.”

Although Kaplan rejected the committee’s appeal, he granted an extension that was “modest” according to Sussberg, who stated that the company would have a plan ready for unsecured creditors to evaluate within two weeks. The crypto firm’s lawyers have indicated that they are exploring all possible avenues, including a sale of assets, to emerge from bankruptcy as a more robust entity.

BlockFi’s financial woes stem from the company’s controversial decision to offer high-yield accounts backed by cryptocurrencies like Bitcoin and Ethereum. However, the firm’s aggressive growth strategy was met with regulatory scrutiny, with several states such as New Jersey, Alabama, and Texas ordering the company to cease operations in their jurisdictions.

In January 2022, the US Securities and Exchange Commission (SEC) issued a cease-and-desist order against BlockFi, alleging that the firm’s interest accounts were unregistered securities. The SEC’s lawsuit is ongoing, with BlockFi seeking to have the case dismissed.

In conclusion, the extension granted to BlockFi provides the company with additional time to devise a plan to emerge from bankruptcy as a viable entity. However, the company faces several challenges, including regulatory scrutiny, legal battles, and the loss of customer confidence. Only time will tell whether BlockFi can overcome these hurdles and regain its position as a leading player in the cryptocurrency lending space.


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Coinbase Wallet Launches Standalone Browser Extension

Coinbase continues to look for more optimization. In a world where versatile wallet tools like Metamask have had immense prevalence for crypto users, the attention and investment into standalone wallets is increasing. Of course, in enters Coinbase, one of the most prevalent names in the world of crypto exchanges.

The exchange has been scaling up from providing simple exchange capabilities this year through a number of initiatives. The list of supported tradable tokens on the platform continues to grow rapidly, a new NFT marketplace has millions of users on the waitlist, and now there are new initiatives at Coinbase to further the Coinbase Wallet capabilities.

This Browser Does More Than Just Browsin’

A press release to kick off the week for Coinbase has shared the firm’s latest announcement: the Coinbase Wallet is now available as a full standalone browser extension, available on the Chrome webstore.

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The exchange first introduced a downloadable browser extension back in May. However, users were only allowed to link wallets to the extension, rather than having direct access. This week’s update takes the mobile app out of the equation, and will allow Wallet users to have streamlined access towards all wallet capabilities, including connections with NFTs, DeFi platforms, DEXes, and more.

Existing Wallet users can now drop WalletLink and download the standalone extension, allowing consumers to import existing self-custody Ethereum-based wallets or create a new one. While many blockchain platforms will of course still require specific wallets, (such as the Terra ecosystem or many Tezos applications, for example) there is no doubt that Coinbase is looking to take some market share from leaders like Metamask.

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After a rougher start to the initial public trading period that $COIN faced earlier this year, the exchange is looking to right the ship, and has showed strong performance in the last quarter of the year. | Source: NASDAQ: COIN on

Related Reading | New York Mayor Says Cryptocurrencies Should Be Taught In Schools

What’s In A (Coinbase) Wallet?

Looking forward, the exchange has stated that they “will continue working to empower everyone to use dapps and web3 by building the easiest-to-use and most accessible self-custody wallet in the ecosystem.”

Self-custody has been a heightened topic in crypto, as consumers balance the reliance of emerging DeFi products with the old adage, “not your keys, not your coins.” Accordingly, many firms have shifted focus to potential opportunities with wallets. Jack Dorsey’s Square is reportedly working on a hardware wallet with self-custody features. User interface, security, device compatibility, and multichain support are the priority features for these platforms – with room for optimization relative to the current landscape.

It’s very likely that the wallet landscape and experience one year from now looks substantially different than it does today.

Related Reading | Bitcoin Cemented At $60K? Why BTC Could Smash All Resistance

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