BlockFi Creditors Seek Control of Bankruptcy Case, Fretting Costs

BlockFi’s creditors, frustrated over the crypto lender’s bankruptcy proceedings, are asking a judge to let them propose their own wind-down plan or hand the Chapter 11 case’s reins over to an independent trustee.

BlockFi’s Chapter 11 case isn’t warranted because the company doesn’t have significant assets, has burned through money on court costs, and has little hope of winning approval of a plan, a creditors’ committee said Tuesday in a court filing.

The committee also accused BlockFi of lying to customers and “aiding and abetting” $900 million in fraudulent transfers, according to the filing in the US Bankruptcy Court for ...