Michael Kaplan News

By Dietrich Knauth

Bankrupt crypto companies FTX and BlockFi are allowed to proceed in negotiations for their claims settlement, according to a new court filing.

U.S. Bankruptcy Judge Michael Kaplan in Trenton, New Jersey, ruled that a J&J company's second bankruptcy, like its first, must be dismissed because the talc lawsuits did not put it in immediate «financial distress.» «In sum, this Court smells smoke, but does not see the fire,» Kaplan wrote, referring to the J&J unit LTL. «Therefore, the emphasis on certainty and immediacy of financial distress closes the door of chapter 11 to LTL at this juncture.» J&J said on Friday that it would appeal Kaplan's decision, and said it would vigorously defend itself against lawsuits that are «specious and lack scientific merit.» J&J's first bankruptcy gambit began in 2021, when it offloaded its talc liabilities into a new company, LTL Management, and immediately placed that company into bankruptcy.

By Dietrich Knauth

A United States judge has granted permission to bankrupt crypto lender BlockFi to return $297 million to customers with deposits held in its Wallet program, Reuters reported on May 11. 

BlockFi, a lender of digital assets, was given additional time to submit a bankruptcy exit plan by a New Jersey bankruptcy judge in the United States on April 19.

The highly disputed Robinhood shares claimed by both BlockFi and FTX  might be transferred to a neutral broker or an escrow account while the courts determine the rightful owner.