BlockFi International, the Bermudian-based fintech firm, is suing a former client for more than $800,000 for what it claims is non-payment of a series of loans.

The proceedings against Druk Holding and Investments Limited, a company incorporated under the laws of Bhutan, have been filed in the United States Bankruptcy Court of New Jersey, which is where Chapter 11 cases are currently being heard in relation to parent company BlockFi and eight related companies including the island-based organisation.

The plaintiffs say that in 2022 BlockFi International made loans to Druk of 30,000,000 USD Coin which had an aggregate value of $30 million.

Druk provided collateral for the loans in the form of 1,888.79 Bitcoin.

Last November, BlockFi International exercised its callable option on loans to Druk for the entire 30,000,000 USDC.

The plaintiffs say Druk instructed BlockFi International to liquidate the collateral and apply the proceeds thereof to Druk’s outstanding obligations under the loan documents.

BlockFi International said it sold the collateral consisting of 1,888.79 BTC at the then available spot price of $15,450 per BTC.

This sale resulted in proceeds of $29,181,833.31 which, after application to Druk’s outstanding obligations owed under the loan documents, resulted in a deficiency of 818,166.99 USDC, BlockFi International claims.

The plaintiffs have asked the court to award it relief in its favour against Druk of compensatory damages, including actual damages of not less than $818,166.99, plus interest, court costs, and all reasonable and necessary attorneys’ fees, expenses and costs.