A day after filing for bankruptcy, embattled cryptocurrency lender BlockFi, on Tuesday will make its first appearance in U.S. bankruptcy court after filing for Chapter 11 protection on Monday.
BlockFi is expected to tell U.S. Bankruptcy Judge Michael Kaplan in Trenton, New Jersey why it went bankrupt and how it plans to exit from Chapter 11. It has asked Kaplan for authority to continue paying employees, maintain bank accounts, and other measures needed to continue its day-to-day operations during its bankruptcy case.
As part of its plan to recover funds belonging to its customers/investors, BlockFi had sued, the founder of FTX, Sam Bankman-Fried seeking to take possession of shares in the stock trading platform, Robinhood.
