As beleaguered Jersey City cryptocurrency lender BlockFi continues its Chapter 11 proceedings, Genova Burns LLC announced Jan. 3 it will serve as local counsel in the bankruptcy case.
NJBIZ has chronicled the stunning fall of BlockFi – a 2022 NJBIZ Company to Watch – as it became engulfed in the FTX fallout amid a wider crypto collapse, leading to a filing for Chapter 11 bankruptcy protection Nov. 28.
That action came less than a month after the platform halted withdrawals.
Two weeks ago, BlockFi filed a motion in U.S. Bankruptcy Court for the District of New Jersey to allow customer withdrawals, which are still currently frozen on the platform. A hearing on that motion is set for Jan. 9.
For the BlockFi bankruptcy, Newark-based Genova Burns will work with the national bankruptcy and cryptocurrency groups at Brown Rudnick LLP, primary counsel to the creditor’s committee.
Daniel Stolz, chair of Genova Burns’ Bankruptcy, Reorganization & Creditors’ Rights practice, said the firm is honored to be retained in this landmark Chapter 11 case.
“Our team is looking forward to working diligently to provide creditors of BlockFi with the largest possible recovery,” said Stolz.
“This is another step towards firmly establishing Genova Burns as a key player in the bankruptcy and restructuring space, and as an emerging player in the world of cryptocurrency disputes,” added James Burns, managing partner of Genova Burns, in a statement.