BlockFi Sues Bankman-Fried Entity To Recover Collateral After Bankruptcy - Filing

WASHINGTON (UrduPoint News / Sputnik - 29th November, 2022) Cryptocurrency firm BlockFi is suing an entity tied to the head of fellow cryptocurrency player FTX, Sam Bankman-Fried, in an attempt to recover collateral the company says it is owed, according to a court document filed in the US Bankruptcy Court for the District of New Jersey.

BlockFi, which filed for bankruptcy earlier on Monday, filed a suit against Bankman-Fried's Emergent Fidelity Technologies demanding he give them an unspecified amount of collateral they claim belong to the company.

The suit seeks an order from the court directing Emergent to immediately transfer the collateral to a neutral party, and ultimately BlockFi, the filing said.

Earlier this month, Bankman-Fried's cryptocurrency business filed for bankruptcy after competitor Binance backed out of plans to acquire it.

Neither individual nor institutional investors are expected to get anything back from FTX's bankruptcy proceedings, Gary Korolev, CEO of financial services firm Sovereign Wealth Management, told Sputnik.