Law360 covered a case in which Bankruptcy Group member Joao F. Magalhaes is representing a creditor and former borrower of cryptocurrency platform BlockFi Lending LLC in contested bankruptcy proceedings before the United States Bankruptcy Court for the District of New Jersey. At issue is whether BlockFi Lending properly liquidated millions of dollars in digital assets that were to serve as collateral for loans.
In the article, Magalhaes states, "We know that we were dealing with an asset that was going up and down [in value]. That’s a red herring, though. What we have is a lender that abused its rights under the LSA, abused the parties' expectations, and in some respects did engage in predatory lending."