Inside transfer wipes out $1M executive debt as crypto firm offloads payments business without independent valuation

RocketFuel Blockchain transferred substantially all assets used in its payments business to RPay, whose sole director and CEO, Peter M. Jensen, also serves as a RocketFuel director and executive officer.

The related-person deal closed Aug. 13 and was disclosed in an Aug. 21 regulatory filing. RocketFuel said the assets used primarily in payments included intellectual property, contracts, merchant relationships and other assets, together with cash and accounts receivable attributable to that business.

The disclosed consideration centered on debt relief. RPay assumed $800,000 in deferred compensation that RocketFuel owed Jensen and $200,000 owed to Bennett J. Yankowitz, a former RocketFuel director and executive who remained on its advisory board. RocketFuel was released from both obligations at closing.

The filing's consideration section did not list a cash payment to RocketFuel. It described consideration received by the company, not a distribution to its stockholders.

… Continue reading the full article at the original source below.