The sovereign investment arm of the Kingdom of Bhutan, which manages an estimated $2.9 billion in assets, has invested millions in cryptocurrencies and is a client of bankrupt crypto firms BlockFi and Celsius.
Druk Holding and Investments (DHI), the commercial arm of the Royal Government of Bhutan, has developed a crypto portfolio but has not disclosed it to the public, according to a report published by Forbes. The funds came to light after the cryptocurrency contagion in 2022, when companies like Celsius and BlockFi filed for bankruptcy. According to a report from Celsius, DHI withdrew more than $65 million and deposited nearly $18 million in cryptocurrency. Lawyers for BlockFi filed a complaint against DHI seeking repossession of outstanding assets, alleging the fund defaulted on a $30 million loan in March.
BlockFi Claims DHI Refuses to Repay Loan in Full After Liquidating 1,888 Bitcoin, Collateral, worth $76.5 million at the time. On the other hand, DHI CEO Ujjwal Deep Dahal said in a statement to Forbes that the issue was confidential and emphasized that “the issue with BlockFi has been resolved.”
Celsius and BlockFi are two of the most notable bankruptcy filings in the cryptocurrency space in 2022. On July 14, crypto lending platform Celsius filed for a Chapter 11 reorganization, also known as a bankruptcy filing. Since then, the struggling cryptocurrency lender has been dealing with bankruptcy proceedings and is working on a restructuring plan. On November 28, BlockFi also filed for bankruptcy following the collapse of the infamous FTX exchange.
