Defunct crypto lending firm BlockFi applied to a court to request the transfer of “trade-only” assets from its users’ accounts into stablecoins so the individuals could withdraw them. The request marks another step toward the return of users’ funds, a process that the company began in August.
On Aug. 29, BlockFi filed an application to the United States Bankruptcy Court for the District of New Jersey to authorize the conversion of so-called trade-only assets into stablecoins. The assets in question — Algorand, Bitcoin Cash and Dogecoin — cannot be withdrawn easily and hence BlockFi suggests a one-time exchange of them for Gemini Dollar (GUSD) or other stablecoin.
According to the application, the amount of trade-only assets doesn’t exceed 0.5% of all US wallet assets of BlockFi users. Other trade-only assets, such as Cardano, Solana, Avalanche, etc. are being separately held by BlockFi International.
The Committee of BlockFi creditors, recognized by the Court, supported the company’s request.
In 2022, BlockFi became one of several companies that sought Chapter 11 bankruptcy protection in the US, along with FTX, Celsius Network, and Voyager Digital. In November 2022, it temporarily stopped clients from withdrawing funds. On Aug 16, the court authorized the company to open withdrawals for the first time in nine months.
The court has also conditionally approved BlockFi’s restructuring plan. The company prioritizes recovering funds from entities including Alameda Research, FTX, Three Arrows Capital, Emergent and Core Scientific. Last week, BlockFi’s legal team tried to block attempts by FTX to retrieve hundreds of millions of dollars to pay back their creditors.
Canterbury MP Rosie Duffield has resigned from the Labour Party.
The 53-year-old MP is the first to jump ship since the general election and in her resignation letter criticised the prime minister for accepting thousands of pounds worth of gifts.
She told Sir Keir Starmer the reason for leaving now is “the programme of policies you seem determined to stick to”, despite their unpopularity with the electorate and MPs.
In her letter she accused the prime minister and his top team of “sleaze, nepotism and apparent avarice” which are “off the scale”.
“I’m so ashamed of what you and your inner circle have done to tarnish and humiliate our once proud party,” she said.
Since December 2019, the prime minister received £107,145 in gifts, benefits, and hospitality – a specific category in parliament’s register of MPs’ interests.
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Ms Duffield, who has previously clashed with the prime minister on gender issues, attacked the government for pursuing “cruel and unnecessary” policies as she resigned the Labour whip.
She criticised the decision to keep the two-child benefit cap and means-test the winter fuel payment, and accused the prime minister of “hypocrisy” over his acceptance of free gifts from donors.
“Since the change of government in July, the revelations of hypocrisy have been staggering and increasingly outrageous,” she said.
“I cannot put into words how angry I and my colleagues are at your total lack of understanding about how you have made us all appear.”
Ms Duffield also mentioned the recent “treatment of Diane Abbott”, who said she thought she had been barred from standing by Labour ahead of the general election, before Sir Keir said she would be allowed to defend her Hackney North and Stoke Newington seat for the party.
Her relationship with the Labour leadership has long been strained and her decision to quit the party comes after seven other Labour MPs were suspended for rebelling by voting for a motion calling for the two-child benefit cap to be abolished.
“Someone with far-above-average wealth choosing to keep the Conservatives’ two-child limit to benefit payments which entrenches children in poverty, while inexplicably accepting expensive personal gifts of designer suits and glasses costing more than most of those people can grasp – this is entirely undeserving of holding the title of Labour prime minister,” she said.
Ms Duffield said she will continue to represent her constituents as an independent MP, “guided by my core Labour values”.