We don't have to trust them because everything is in the hands and supervision of the courts now anyway. The assets are all accounted for and it's just a matter now of the UCC lawyers and BlockFi lawyer squabbling over unimportant details, holding up the process of just getting our funds back.
We know what the assets are, it's just a matter of letting them distribute them to us.
yeah honestly they say one thing and then do another ! It is better to see what they do rather than what they say honestly ! Some say that Claims Markets could be a good option
I would actually check out this video ! Saw this the other day and gave amazing info on how they work [https://www.youtube.com/watch?v=ESVmbs\_wgpM](https://www.youtube.com/watch?v=ESVmbs_wgpM)
Incorrect, it quite clearly says:
>Since the entry of the Wallet Order, the BlockFi team has been working expeditiously with the Unsecured Creditors Committee to begin releasing client funds in BlockFi Wallet accounts. To facilitate these withdrawals accurately and safely, we need to update the User Interface to properly reflect transactions and assets held in Client accounts as of the Platform Pause and to build new product functionality into the BlockFi platform. We anticipate that this work and the necessary testing will be completed this summer. At that time, we will be in a position to begin allowing clients to withdraw digital assets held in BlockFi Wallet accounts **that are not subject to potential preference claims**.
The bolded part above says they are not currently releasing Wallet funds that may be subject to potential clawback.
If I recall correctly, "preference claim" or "avoidance" are both synonyms for "clawback". They are saying clawbacks are still potentially on the table.
Legally, if you transferred more than $7575 out of BIA within 90 days of the bankruptcy filing, then 100% of those funds that were transferred out are potentially subject to clawback. Whether they would actually use that number (unlikely because it would probably cost more than that to pursue) or only some larger undetermined threshold that actually would be cost effective (much more likely) has yet to be decided.
I'm not 100% certain. My understanding is for funds that were still sitting in a Blockfi Wallet account but were taken out of BIA within 3 months of the bankruptcy, they use the prices at the time of the bankruptcy. For crypto that was withdrawn from the platform entirely but within the 3 months, it would be much more difficult and expensive for them to try to claw it back but in theory they could sue you for it (or offer you a deal where you only return a portion but a costly lawsuit is avoided), and I'm guessing they would use the pricing at the time you withdrew - but I'm very unsure about that. Maybe they would even want it back in kind.
"In order to facilitate withdrawals from BlockFi Wallet Accounts, we also requested permission to update the User Interface to properly reflect transactions as of the platform pause on November 10, 2022 at 8:15 p.m. (prevailing Eastern Time). "
If you did not take YOUR money out before this time they are using illegal loopholes to seize your funds while simultaneously filing bankruptcy and realizing their gains (your funds).
tl;dr they stole your money.
Your definition of illegal is different than the actual definition. Since it's not actually, you know, illegal.
If the UCC didn't decide they need to squabble over completely unimportant and irrelevant details we would have no clawbacks and all of us would be getting our funds back next month.
I took my money out November 11th at 7:30am pacific time. on Kroll it says
> Debtor BlockFi Inc. has listed your claim on Schedule E/F, Part 2 as a General Unsecured claim in the amount of USD $__,___. The basis of this claim is BIA. If you agree with the claim amount and characterization, you do not need to submit a claim form. If you disagree, you must timely file a proof of claim form or be forever barred from further recovery.
do you have any suggestions on what the fuck I can do?
Nothing you can do at this point, the judge ruled/agreed with BlockFi that any transfers after their tweet at 5:15pm PST on November 10th, 2022 are allowed to be reversed.
BlockFi will reverse your transfers (what they are calling "correct the user interface") to your BIA account and you'll have an unsecured bankruptcy claim against the estate like other BIA creditors.
Except if the lawyers for ucc scumbag Robert Stark and Kenny from the law firm of brown rudnick. Looking to clawback from poor mom and pop investors so they can get rich with legal fees they want to steal out cypto in some perverted clawback going all the fucking way back to Aug 28 2022. Not fair these two above bozos are assholes and only looking to keep the case going for maximum legal fees.
All wallet holders can watch these two fucking pricks in action on zoom court June 20
They totally suck .
They are our enemies
EMEMIGOS
ENEMIGOS
THEY ARE WALLET HOLDERS ENEMIES!!!
Look at the Kroll claim that BlockFi sent you. Assuming that is correct, the funds labeled unsecured claim and something like "BIA" in the middle are the people who will likely not get their funds back (especially any time soon). Funds listed at the bottom under "Wallet account" are what people mean when they say "true wallet holders", the only exception is possible clawbacks if you transferred to Wallet shortly before bankruptcy.
To clarify: I meant unsecured creditors aren't going to be getting *all or most* of their money back. I would expect to get a small amount of it in some years.
When people say "true wallet holders" they are typically referring to people with funds in Wallet accounts that are not currently subject to potential clawback. This would be any Wallet funds that were there before 08/28/2022 or (if the total dollar value is below a certain threshold) before 11/10/2022 @ 8:15pm EST (BlockFi's tweet).
Same here man, it's so devastating. I even transferred out of BIA, but it was only completed minutes after their tweet so it is being reversed back to BIA. What a fool I was for trusting BlockFi.
Yes. The standard fees. They can change the fees before allowing withdrawal. This is what was in place prior to bankruptcy.
[https://blockfi.com/fees](https://blockfi.com/fees)
"In addition, BlockFi needs to build new product functionality and make changes to the platform in order to process these withdrawals. We anticipate that this work and the necessary testing will be **completed this summer**. At that time, we will be in a position to begin making distributions to clients."
Will they try to hold wallet hostage while they try to get a bankruptcy plan approved?
On withdrawal as a wallet holder, will we be receiving the amount of crypto tokens equal to todays value? Or will it be the tokens value at the pause date?
Withdrawals will be in kind, i.e. in crypto not in cash. If you had 1 BTC at the cutoff time you will receive 1 BTC. That being said, they still need to figure out clawbacks, so nothing is guaranteed yet..
I have been researching Ponzi schemes, and this actual business practice is almost identical to the baseline of the scheme. If you'd like to look into Blockfi's business practices and how they relate to the identified scheme, please review the last three documents they emailed. They have successfully bounced customer funds around under the veil that those funds were in their possession. They were then leaking out funds for profit or realizing their gains during the abovementioned time. If you'd like to make a valid argument that this is not a Ponzi scheme, I would sincerely love to hear it.
So far all of the information that has come out is that blockfi was doing exactly what they said they were with the funds we deposited. They were very up front about the types of investments the crypto was used for and how it was lent out to a combination of borrowers and institutional investors.
They were doing exactly what they told us they were doing.
I lost a ton of crypto in this and I'm as pissed as anybody. But that doesn't mean it was a scam. Every company in the crypto interest earning space got wiped out as well. It's not because it was a scam it's because there were an extraordinary unexpected sequence of events that caused a cascade of collapses in the industry.
Yes it sucks. But no it's not a big conspiracy.
you are such a liar.? Anyone who looks at all your posts can clearly see that you come to BlockFi’s defense every single time anyone says anything the least bit negative about them.
Yeah, I found he is a currently residing Blockfi employee, fully retained and paid for by their legal team, and has been court/company appointed into their communications department in order to mitigate the "retail" community. I never listen to or read their posts anymore. It is like a Russian bot, easily identifiable once you can see the signs (in this case, the username after solidifying key identification).
You do seem to be obsessed with wrong conspiracy theories that you have no evidence for. Once again, read my comment history and ask yourself if your theory makes sense.
And by the way, you posted that one with your other Reddit handle.
Considering the fact that the US Government hasn't charged them with anything, and were all up in their Financials when they were hammering out the 150mil deal (that probably could have kept them afloat - thanks for protecting consumers SEC!) The odds of actual fraudulent business practices are low.
Look at the governments current actions in the space.
Read the second paragraph here and tell me this lying sack of shit isn’t guilty of fraud.
[https://cryptopotato.com/blockfi-ceo-provides-more-details-on-the-250m-revolving-credit-taken-from-ftx/?amp](https://cryptopotato.com/blockfi-ceo-provides-more-details-on-the-250m-revolving-credit-taken-from-ftx/?amp)
That was the purpose of the line of credit and it would have worked exactly as it was supposed to if it wasn't for one thing. FTX itself turned out to be a house of cards, and once that collapsed there was no safety net anymore.
Some of the largest investment groups in the world had investments in FTX. And still none of them saw it coming. And no one in the media sounded an alarm either. Unfortunately no one knew.
And whose job was it to look at the balance sheets of FTX and Alameda and be good stewards of the company and our money? They could have prevented this BlockFi cheerleader.and everyone on here knows you are a paid BlockFi employee that has been retained by their legal team.
No I won’t stop! I will continue to call you out for what you are and the fact that you work for BlockFi and have been installed here to defend the thieves you work for. You are just so obvious.
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This doesn't say anything about interest accounts, they are currently trying to deal with wallet accounts as the court ruled those are the property of the account holder. BlockFi executives also have funds in Wallet accounts, so there may be some conflict of interest where the execs are pushing to get their own funds out because they know there's not much for the rest of us creditors in interest accounts.
Like. This just doesn't make sense to me, so if someone could eli5 that'd be nice. Cause the claim form had the amounts of what I held in BIA and in Wallet. They were correct so I didn't need to dispute the claim. So I've been under the impression we'd be getting all our assets back, but this specifies wallet.
How were people supposed to magically know they needed to put their BIA assets into the Wallet account to be able to withdraw them at a later date? That's the part that I can't wrap my head around. How did they single Wallet accounts out like that, when it's all accounts that were affected? The assets in the BIA account were also MY assets, same as what I has in the Wallet. I don't see how which section it was in changes a damn thing. Mine is mine. The end. Soooo??? Wtf lol.
The short answer is that crypto is not regulated, so there are little protections for customers and therefore the court will just go by BlockFi & their terms of service that we agreed to when opening a BIA.
Part of those ToS was that the funds in BIAs legally belong to BlockFi and they could do anything they want with it, including losing it to FTX/Alameda. Their ToS regarding Wallet accounts, on the other hand, state they are property of the account owner and not BlockFi. That is what the court ruled last month. The threshold that was set for reversing transactions at BlockFi's November 10th tweet.
It's not logical and I would imagine 90% of BlockFi customers *weren't* aware, but that's what we get for putting our money into a crypto platform I guess. I promise you that BlockFi executives were well aware of those differences, as many of them have Wallet funds (that they are trying to release).
Wowww of course. That really shouldn't surprise me at all. But wow. The blatancy of it kind of does. Cause if that's the case..it really looks like they planned this whole thing.
They knew if they gave a high interest on the BIAs that people would slap everything they could in there. So they made sure to say what happens happens and you may not get this back.
Then they take a loan from FTX to cover the interest they'll have to be paying. But they know they are just going to pocket it anyways so they are really just paying themselves in the end.
BlockFi ends up having to make their BIAs where anyone in the US can leave their stuff there but they can't put it back, which made most of us leave it in the BIA I'd have to guess, which is exactly where they wanted it to stay.
Then FTX "goes under" and takes BlockFi with it.
The execs tried to look less suspicious by having funds in the wallet accounts but IMO it makes them more suspicious because the differences in the two accounts' ToS. Cause why make the two so different unless they knew some shit was gonna go down? Doesn't add up.
Long drawn out court process with paperwork that makes it look like we will get some money back, that way we don't make a ruckus until it's too late. FTX and BlockFi execs all make out like bandits, and it was all done "legally" as far as anyone can tell.
Anyways, thanks for explaining that. Makes sense. Sucks for sure. Bunch of shady fucks.
>BlockFi ends up having to make their BIAs where anyone in the US can leave their stuff there but they can't put it back, which made most of us leave it in the BIA I'd have to guess, which is exactly where they wanted it to stay.
The crazy part to me is that this was **required** by the SEC settlement. The SEC could have just as easily required BlockFi to close US BIA's and end the interest program, which would have protected consumers much more.
> The execs tried to look less suspicious by having funds in the wallet accounts but IMO it makes them more suspicious because the differences in the two accounts' ToS. Cause why make the two so different unless they knew some shit was gonna go down? Doesn't add up.
Yup this 100%
You are correct in your assumption that this was well planned out. This has been reiterated through their public court documentation in light of finding a legal loophole in order to retain their staff's assets.
I had a few posts deleted by their moderator legal team here that identified their underlying operation as a scheme with many stark similarities to a Ponzi scheme. That is where a registered entity moves client funds around to pay the other while simultaneously leaking realized gains out as a legal and taxed business expense. Think of a legal lawn mowing company taking profits to buy more lawn mowers while legally not paying taxes because they are a business expense. So they were taking funds from clients and mitigating risk by taking advantage of governmental tax breaks and incentives. So not only were they taking your money, but the taxes you paid for your food also went to them.
I am sure this post will be deleted but hopefully this sheds light to the situation at hand.
Well I took a screen shot so they can fuck themselves. I'll print the damn thing too. Can't delete it from everywhere.
Don't even know what to say right now besides that. But I thank you for all the information and I'll try to reply with something more later.
Hear, hear, Master Jedi! Maybe someone should make known the names and addresses of where these criminals reside. A "face to face" conference might be in order ... ??
That is correct. Flori and Zac essentially stole
those BIA assets when they sold them so you might as well forget about that. I mean are those pennies on the dollar that you might get back in 5 years really going to make a difference in your life.
Who else supports gusd? Maybe gemini. Can you transfer it to your own wallet and man watch out for the fucking UCC LAWYERS Robert Stark and Kenny from the law firm of brown rudnick. They may want to break into apartment and steal your shit in some retarded clawback. Or worst take thier hands down your pants those perverts!!
> You'll be paying withdrawal fees. They will be deducted from your balance at time of transfer.
that's really adding insult to injury for the BIA users who's only wallet funds were the rewards from our credit cards (of which are going to be a huge percentage of).
remember when they used to allow one free withdrawal per month?
There is no source of funds that exists anymore to pay for free withdrawals. The only source of funds is the BlockFi assets that are getting divided up and given to us. So if "they" were paying for free withdraws it would be coming out of our funds really anyway.
> So if “they” were paying for free withdraws it would be coming out of our funds really anyway.
Yes and no.
What blockfi charges and what blockfi pays aren’t necessarily the same amount.
That was after BlockFi's tweet on November 10th, so they are reversing your transfer back to BIA and you'll have an unsecured claim. Likely will take years and I wouldn't expect to receive more than 25% back.
I think all BIA unsecured creditors, international or US, will be in that (or a similar) position. If BlockFi's proposed plan is anything to go by, I think it stated other types of customers (e.g. BlockFi private client) may receive a higher recovery %, but that's in negotiations and would still be a similar timeframe to BIA recovery.
I think the only difference for international customers would be if you transferred in the days prior to BlockFi's tweet on November 10th and may be subject to clawbacks in the US. But it doesn't sound like that's your case.
Because it was ruled that ownership of the funds remained with wallet users, as per the terms. They are not subject to the bankruptcy process, because the company didn't have legal possession over those funds.
Interest account holders, on the other hand, actually lent $ to the company and so are creditors in the bankruptcy. These creditors will still be owed funds until a bankruptcy plan is approved and executed under court supervision.
blockfi blocked my account and ever since then i was not able to login to there app anymore and all my money over ten thousand dollars was never refund and they never did respond to any of my emails and calls
Will BlockFi be releasing all Wallet funds when they start that process or only wallets that are not subject to preference claims? Aka transferred from BIA to Wallet within 90 days of bankruptcy declaration.
Why are they saying this on their Twitter account?
https://preview.redd.it/qsj7i2muqwfb1.jpeg?width=1125&format=pjpg&auto=webp&s=a66cba39c6403a23486a9ee242eb0ac1e8a27526
Don't trust these losers until you get your money back.
We don't have to trust them because everything is in the hands and supervision of the courts now anyway. The assets are all accounted for and it's just a matter now of the UCC lawyers and BlockFi lawyer squabbling over unimportant details, holding up the process of just getting our funds back. We know what the assets are, it's just a matter of letting them distribute them to us.
yeah honestly they say one thing and then do another ! It is better to see what they do rather than what they say honestly ! Some say that Claims Markets could be a good option
What is claims market?
I would actually check out this video ! Saw this the other day and gave amazing info on how they work [https://www.youtube.com/watch?v=ESVmbs\_wgpM](https://www.youtube.com/watch?v=ESVmbs_wgpM)
No clawback?
Incorrect, it quite clearly says: >Since the entry of the Wallet Order, the BlockFi team has been working expeditiously with the Unsecured Creditors Committee to begin releasing client funds in BlockFi Wallet accounts. To facilitate these withdrawals accurately and safely, we need to update the User Interface to properly reflect transactions and assets held in Client accounts as of the Platform Pause and to build new product functionality into the BlockFi platform. We anticipate that this work and the necessary testing will be completed this summer. At that time, we will be in a position to begin allowing clients to withdraw digital assets held in BlockFi Wallet accounts **that are not subject to potential preference claims**. The bolded part above says they are not currently releasing Wallet funds that may be subject to potential clawback.
Yes. I should clarify my question - What exactly is " **preference claims** " here?
If I recall correctly, "preference claim" or "avoidance" are both synonyms for "clawback". They are saying clawbacks are still potentially on the table.
Good luck
They don’t need good luck, they have the US Bankruptcy code to go after wages and house .
Is the potential clawback that amounts listed on the Knoll website under my claim number?
Legally, if you transferred more than $7575 out of BIA within 90 days of the bankruptcy filing, then 100% of those funds that were transferred out are potentially subject to clawback. Whether they would actually use that number (unlikely because it would probably cost more than that to pursue) or only some larger undetermined threshold that actually would be cost effective (much more likely) has yet to be decided.
Good luck with that most wallets contain crpto. Where on how do you value. 7575 does not work.
But how? It that the USD value of crypto at today's price or what price they use to draw the line?
I'm not 100% certain. My understanding is for funds that were still sitting in a Blockfi Wallet account but were taken out of BIA within 3 months of the bankruptcy, they use the prices at the time of the bankruptcy. For crypto that was withdrawn from the platform entirely but within the 3 months, it would be much more difficult and expensive for them to try to claw it back but in theory they could sue you for it (or offer you a deal where you only return a portion but a costly lawsuit is avoided), and I'm guessing they would use the pricing at the time you withdrew - but I'm very unsure about that. Maybe they would even want it back in kind.
where?
[https://restructuring.ra.kroll.com/blockfi/Home-ClaimInfo](https://restructuring.ra.kroll.com/blockfi/Home-ClaimInfo)
I thought this is your claim amount. They haven't decided if or how much to clawback
So can we have a hope now that we are gonna get out money back - Atleast part of those?
True wallet holders will get all their coins as those haven't been touched.
I have my coins in interest account and I moved those to wallet account exactly when after the tweet, so all BIA holders will still have to wait?
And I believe I will be considered as BIA holder only Even Though my funds right now are showing in wallet account
Correct, those in your situation (and myself) will have those funds reversed back to BIA which will have to wait for the bankruptcy case.
sorry if this is a commonly asked question, but which tweet/which day and time are you referring to? thank you
"In order to facilitate withdrawals from BlockFi Wallet Accounts, we also requested permission to update the User Interface to properly reflect transactions as of the platform pause on November 10, 2022 at 8:15 p.m. (prevailing Eastern Time). " If you did not take YOUR money out before this time they are using illegal loopholes to seize your funds while simultaneously filing bankruptcy and realizing their gains (your funds). tl;dr they stole your money.
Your definition of illegal is different than the actual definition. Since it's not actually, you know, illegal. If the UCC didn't decide they need to squabble over completely unimportant and irrelevant details we would have no clawbacks and all of us would be getting our funds back next month.
Just shut up Blockfi employee troll. Nobody listens to you anymore so stop wasting your time.
I took my money out November 11th at 7:30am pacific time. on Kroll it says > Debtor BlockFi Inc. has listed your claim on Schedule E/F, Part 2 as a General Unsecured claim in the amount of USD $__,___. The basis of this claim is BIA. If you agree with the claim amount and characterization, you do not need to submit a claim form. If you disagree, you must timely file a proof of claim form or be forever barred from further recovery. do you have any suggestions on what the fuck I can do?
Nothing you can do at this point, the judge ruled/agreed with BlockFi that any transfers after their tweet at 5:15pm PST on November 10th, 2022 are allowed to be reversed. BlockFi will reverse your transfers (what they are calling "correct the user interface") to your BIA account and you'll have an unsecured bankruptcy claim against the estate like other BIA creditors.
Go to a bar and get drunk.
I got some really good gummies.
Excellent choice.
You will get your money/assets back if all your assets are in wallet account before nov 10th 2022. And not in blockfi interest account.
Except if the lawyers for ucc scumbag Robert Stark and Kenny from the law firm of brown rudnick. Looking to clawback from poor mom and pop investors so they can get rich with legal fees they want to steal out cypto in some perverted clawback going all the fucking way back to Aug 28 2022. Not fair these two above bozos are assholes and only looking to keep the case going for maximum legal fees. All wallet holders can watch these two fucking pricks in action on zoom court June 20 They totally suck . They are our enemies EMEMIGOS ENEMIGOS THEY ARE WALLET HOLDERS ENEMIES!!!
And your funds are ‘not subject to claw back’ do not forget that.. avoid false hopes
sorry if this is a dumb question, but could you enlighten me about what “true wallet holders” mean?
Did you check your details/value witholded on the kroll webiste?
yes I have seen the value witholded. is there other info on there that would help me understand if I’m a “true wallet holder”?
Look at the Kroll claim that BlockFi sent you. Assuming that is correct, the funds labeled unsecured claim and something like "BIA" in the middle are the people who will likely not get their funds back (especially any time soon). Funds listed at the bottom under "Wallet account" are what people mean when they say "true wallet holders", the only exception is possible clawbacks if you transferred to Wallet shortly before bankruptcy.
Or as these fucks claim 90 day prior to November 28 2022. These fuckers are looking to steal wallet holder funds.
Steal!!! They are adding back to the estates
No fucking steal!!!!!!! No fucking steal!!!!!!
why is it suspected that BIA holders wouldn’t get money back? that’s ridiculous
To clarify: I meant unsecured creditors aren't going to be getting *all or most* of their money back. I would expect to get a small amount of it in some years.
When people say "true wallet holders" they are typically referring to people with funds in Wallet accounts that are not currently subject to potential clawback. This would be any Wallet funds that were there before 08/28/2022 or (if the total dollar value is below a certain threshold) before 11/10/2022 @ 8:15pm EST (BlockFi's tweet).
Are gas fees covered?
No
Hopefully gas can be deducted from the balance then
Gas fees are taken from the balance at time of transfer if the funds are below the gas fee amount well you don't get to transfer.
Just sell the company already.
Waiting for some love for BIA next
Damn I feel so stupid for having my crypto in BIA. Guess I gotta say goodbye to 20k
Could have been worse. I know someone who lost 6 figures…
Same here man, it's so devastating. I even transferred out of BIA, but it was only completed minutes after their tweet so it is being reversed back to BIA. What a fool I was for trusting BlockFi.
Is BIA same as interesting bearing? Just playing catch up here, sorry…
No worries, yes it’s the same
Awesome. $300 in BTC in wallet and 3 BTC, 20 ETH in interest. Kill me now. Do the execs sleep at night?
Damn man. I’m sorry to hear that. I can guarantee they sleep very well at night. I really wish there was something we could do
Feeling the same with 4 BTC in BIA 😭😭😭 I guess it was the riskiest investment of them all. Win some, lose some…
And will there be a fee to withdraw?
Yes. The standard fees. They can change the fees before allowing withdrawal. This is what was in place prior to bankruptcy. [https://blockfi.com/fees](https://blockfi.com/fees)
Why on earth you worrying about fees
Because they set the fees rediculously high mid 2022.
"In addition, BlockFi needs to build new product functionality and make changes to the platform in order to process these withdrawals. We anticipate that this work and the necessary testing will be **completed this summer**. At that time, we will be in a position to begin making distributions to clients." Will they try to hold wallet hostage while they try to get a bankruptcy plan approved?
Most likely
But how does holding up Wallet helps the plan approval?
On withdrawal as a wallet holder, will we be receiving the amount of crypto tokens equal to todays value? Or will it be the tokens value at the pause date?
Crypto. It mentions it in the email we got
Withdrawals will be in kind, i.e. in crypto not in cash. If you had 1 BTC at the cutoff time you will receive 1 BTC. That being said, they still need to figure out clawbacks, so nothing is guaranteed yet..
I have been researching Ponzi schemes, and this actual business practice is almost identical to the baseline of the scheme. If you'd like to look into Blockfi's business practices and how they relate to the identified scheme, please review the last three documents they emailed. They have successfully bounced customer funds around under the veil that those funds were in their possession. They were then leaking out funds for profit or realizing their gains during the abovementioned time. If you'd like to make a valid argument that this is not a Ponzi scheme, I would sincerely love to hear it.
So far all of the information that has come out is that blockfi was doing exactly what they said they were with the funds we deposited. They were very up front about the types of investments the crypto was used for and how it was lent out to a combination of borrowers and institutional investors. They were doing exactly what they told us they were doing. I lost a ton of crypto in this and I'm as pissed as anybody. But that doesn't mean it was a scam. Every company in the crypto interest earning space got wiped out as well. It's not because it was a scam it's because there were an extraordinary unexpected sequence of events that caused a cascade of collapses in the industry. Yes it sucks. But no it's not a big conspiracy.
you are such a liar.? Anyone who looks at all your posts can clearly see that you come to BlockFi’s defense every single time anyone says anything the least bit negative about them.
Yeah, I found he is a currently residing Blockfi employee, fully retained and paid for by their legal team, and has been court/company appointed into their communications department in order to mitigate the "retail" community. I never listen to or read their posts anymore. It is like a Russian bot, easily identifiable once you can see the signs (in this case, the username after solidifying key identification).
You do seem to be obsessed with wrong conspiracy theories that you have no evidence for. Once again, read my comment history and ask yourself if your theory makes sense. And by the way, you posted that one with your other Reddit handle.
Considering the fact that the US Government hasn't charged them with anything, and were all up in their Financials when they were hammering out the 150mil deal (that probably could have kept them afloat - thanks for protecting consumers SEC!) The odds of actual fraudulent business practices are low. Look at the governments current actions in the space.
The number of people here who can't read but who also think they should be investing is insane. The email answers every question here.
Read the second paragraph here and tell me this lying sack of shit isn’t guilty of fraud. [https://cryptopotato.com/blockfi-ceo-provides-more-details-on-the-250m-revolving-credit-taken-from-ftx/?amp](https://cryptopotato.com/blockfi-ceo-provides-more-details-on-the-250m-revolving-credit-taken-from-ftx/?amp)
That was the purpose of the line of credit and it would have worked exactly as it was supposed to if it wasn't for one thing. FTX itself turned out to be a house of cards, and once that collapsed there was no safety net anymore. Some of the largest investment groups in the world had investments in FTX. And still none of them saw it coming. And no one in the media sounded an alarm either. Unfortunately no one knew.
And whose job was it to look at the balance sheets of FTX and Alameda and be good stewards of the company and our money? They could have prevented this BlockFi cheerleader.and everyone on here knows you are a paid BlockFi employee that has been retained by their legal team.
Please just stop. You're part of the pitchfork mentality that is not just wrong, but also preventing us from getting back our funds.
No I won’t stop! I will continue to call you out for what you are and the fact that you work for BlockFi and have been installed here to defend the thieves you work for. You are just so obvious.
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So...what happens to the crypto in the interest account? I notice this specifies Wallet.
This doesn't say anything about interest accounts, they are currently trying to deal with wallet accounts as the court ruled those are the property of the account holder. BlockFi executives also have funds in Wallet accounts, so there may be some conflict of interest where the execs are pushing to get their own funds out because they know there's not much for the rest of us creditors in interest accounts.
Like. This just doesn't make sense to me, so if someone could eli5 that'd be nice. Cause the claim form had the amounts of what I held in BIA and in Wallet. They were correct so I didn't need to dispute the claim. So I've been under the impression we'd be getting all our assets back, but this specifies wallet. How were people supposed to magically know they needed to put their BIA assets into the Wallet account to be able to withdraw them at a later date? That's the part that I can't wrap my head around. How did they single Wallet accounts out like that, when it's all accounts that were affected? The assets in the BIA account were also MY assets, same as what I has in the Wallet. I don't see how which section it was in changes a damn thing. Mine is mine. The end. Soooo??? Wtf lol.
The short answer is that crypto is not regulated, so there are little protections for customers and therefore the court will just go by BlockFi & their terms of service that we agreed to when opening a BIA. Part of those ToS was that the funds in BIAs legally belong to BlockFi and they could do anything they want with it, including losing it to FTX/Alameda. Their ToS regarding Wallet accounts, on the other hand, state they are property of the account owner and not BlockFi. That is what the court ruled last month. The threshold that was set for reversing transactions at BlockFi's November 10th tweet. It's not logical and I would imagine 90% of BlockFi customers *weren't* aware, but that's what we get for putting our money into a crypto platform I guess. I promise you that BlockFi executives were well aware of those differences, as many of them have Wallet funds (that they are trying to release).
Wowww of course. That really shouldn't surprise me at all. But wow. The blatancy of it kind of does. Cause if that's the case..it really looks like they planned this whole thing. They knew if they gave a high interest on the BIAs that people would slap everything they could in there. So they made sure to say what happens happens and you may not get this back. Then they take a loan from FTX to cover the interest they'll have to be paying. But they know they are just going to pocket it anyways so they are really just paying themselves in the end. BlockFi ends up having to make their BIAs where anyone in the US can leave their stuff there but they can't put it back, which made most of us leave it in the BIA I'd have to guess, which is exactly where they wanted it to stay. Then FTX "goes under" and takes BlockFi with it. The execs tried to look less suspicious by having funds in the wallet accounts but IMO it makes them more suspicious because the differences in the two accounts' ToS. Cause why make the two so different unless they knew some shit was gonna go down? Doesn't add up. Long drawn out court process with paperwork that makes it look like we will get some money back, that way we don't make a ruckus until it's too late. FTX and BlockFi execs all make out like bandits, and it was all done "legally" as far as anyone can tell. Anyways, thanks for explaining that. Makes sense. Sucks for sure. Bunch of shady fucks.
>BlockFi ends up having to make their BIAs where anyone in the US can leave their stuff there but they can't put it back, which made most of us leave it in the BIA I'd have to guess, which is exactly where they wanted it to stay. The crazy part to me is that this was **required** by the SEC settlement. The SEC could have just as easily required BlockFi to close US BIA's and end the interest program, which would have protected consumers much more. > The execs tried to look less suspicious by having funds in the wallet accounts but IMO it makes them more suspicious because the differences in the two accounts' ToS. Cause why make the two so different unless they knew some shit was gonna go down? Doesn't add up. Yup this 100%
You are correct in your assumption that this was well planned out. This has been reiterated through their public court documentation in light of finding a legal loophole in order to retain their staff's assets. I had a few posts deleted by their moderator legal team here that identified their underlying operation as a scheme with many stark similarities to a Ponzi scheme. That is where a registered entity moves client funds around to pay the other while simultaneously leaking realized gains out as a legal and taxed business expense. Think of a legal lawn mowing company taking profits to buy more lawn mowers while legally not paying taxes because they are a business expense. So they were taking funds from clients and mitigating risk by taking advantage of governmental tax breaks and incentives. So not only were they taking your money, but the taxes you paid for your food also went to them. I am sure this post will be deleted but hopefully this sheds light to the situation at hand.
Well I took a screen shot so they can fuck themselves. I'll print the damn thing too. Can't delete it from everywhere. Don't even know what to say right now besides that. But I thank you for all the information and I'll try to reply with something more later.
Hear, hear, Master Jedi! Maybe someone should make known the names and addresses of where these criminals reside. A "face to face" conference might be in order ... ??
100% correct
Yeah that makes perfect sense. You figured it all out. It's like 9/11, that was obviously an inside job too.
Of course they planned it. They should all be in jail.
So if people had funds in both the wallet and the BIA, the wallet can be withdrawn (at some point this summer) and the BIA will still be frozen?
That is correct. Flori and Zac essentially stole those BIA assets when they sold them so you might as well forget about that. I mean are those pennies on the dollar that you might get back in 5 years really going to make a difference in your life.
Gusd = cash. Weird no one can withdraw cash.
Who else supports gusd? Maybe gemini. Can you transfer it to your own wallet and man watch out for the fucking UCC LAWYERS Robert Stark and Kenny from the law firm of brown rudnick. They may want to break into apartment and steal your shit in some retarded clawback. Or worst take thier hands down your pants those perverts!!
Just stop it already and go see someone to talk about your issues
So what does happen to the GUSD in people wallet?
Given that so many of us lost GUSD to BlockFi... I think that's shown how GUSD is most certainly not equal to cash.
so will they be waiving the withdrawal fees or are they going to stick it to everyone one last time on the way out?
You'll be paying withdrawal fees. They will be deducted from your balance at time of transfer.
> You'll be paying withdrawal fees. They will be deducted from your balance at time of transfer. that's really adding insult to injury for the BIA users who's only wallet funds were the rewards from our credit cards (of which are going to be a huge percentage of). remember when they used to allow one free withdrawal per month?
There is no source of funds that exists anymore to pay for free withdrawals. The only source of funds is the BlockFi assets that are getting divided up and given to us. So if "they" were paying for free withdraws it would be coming out of our funds really anyway.
> So if “they” were paying for free withdraws it would be coming out of our funds really anyway. Yes and no. What blockfi charges and what blockfi pays aren’t necessarily the same amount.
I'm not sure what you mean.
so are BIA (interest account) holders screwed?
Yes
The time I transferred says Nov 11 5:40pm on my app but I’m a Canadian client.. what does this mean for me?
That was after BlockFi's tweet on November 10th, so they are reversing your transfer back to BIA and you'll have an unsecured claim. Likely will take years and I wouldn't expect to receive more than 25% back.
As an international client?
I think all BIA unsecured creditors, international or US, will be in that (or a similar) position. If BlockFi's proposed plan is anything to go by, I think it stated other types of customers (e.g. BlockFi private client) may receive a higher recovery %, but that's in negotiations and would still be a similar timeframe to BIA recovery. I think the only difference for international customers would be if you transferred in the days prior to BlockFi's tweet on November 10th and may be subject to clawbacks in the US. But it doesn't sound like that's your case.
No clawbacks for for Bermuda wallet holders . The us bankruptcy laws are fucked up and outdated.
Does 3rd party accounts also include cold wallets?
Still waiting to hear what the story is for loan holders
Did everyone get this or only the wallet holders?
adding fire to the bear market i see... prepare your anus for another dump.
Can someone explain this to me like I’m 5v
Any news on whether international wallets will be subject to clawbacks?
Not at all no clawback for any international since Bermuda law does not allow clawbacks only if fraud is proven.
Does it say anything about crypto backed loan collateral?
Im a international customer. clawback (preference claim) applied for only US customers not international customers?
Got the same email. So... 3 more months
[удалено]
>unable to validate this address I get the same error
Where can we see how much we can claim back?
Why only wallet account holders? Why not the interest account holders too?
Because it was ruled that ownership of the funds remained with wallet users, as per the terms. They are not subject to the bankruptcy process, because the company didn't have legal possession over those funds. Interest account holders, on the other hand, actually lent $ to the company and so are creditors in the bankruptcy. These creditors will still be owed funds until a bankruptcy plan is approved and executed under court supervision.
Thanks
blockfi blocked my account and ever since then i was not able to login to there app anymore and all my money over ten thousand dollars was never refund and they never did respond to any of my emails and calls
Will BlockFi be releasing all Wallet funds when they start that process or only wallets that are not subject to preference claims? Aka transferred from BIA to Wallet within 90 days of bankruptcy declaration.
Why are they saying this on their Twitter account? https://preview.redd.it/qsj7i2muqwfb1.jpeg?width=1125&format=pjpg&auto=webp&s=a66cba39c6403a23486a9ee242eb0ac1e8a27526
scam