Bankrupt Crypto Lender BlockFi Receives Approval to Repay Customers
Bankrupt crypto lending platform BlockFi has been given the green light to begin repaying its customers as part of its liquidation plan. The United States Bankruptcy Court of New Jersey has approved BlockFi’s third amended Chapter 11 bankruptcy plan, which includes the reimbursement of customers. Mark Renzi, BlockFi’s chief restructuring officer, has expressed his support for the amended plan. The plan has resolved objections from the FTX Debtors but still faces partial objection from the SEC. Technical modifications to the plan are yet to be resolved.
Maximizing Recovery for Clients
In previous filings, Renzi emphasized the importance of maximizing recovery for clients. He stated that BlockFi’s goal is to return crypto to clients as quickly as possible and urged them to vote in favor of accepting the plan.
This is a developing story, and more information will be added as it becomes available.
Hot Take: BlockFi’s Plan Moves Forward Amidst Uncertainties
Bankrupt crypto lender BlockFi has received approval from the United States Bankruptcy Court of New Jersey to begin repaying its customers as part of its liquidation plan. While objections from FTX Debtors have been resolved, the SEC’s limited objection remains partially unresolved. Mark Renzi, BlockFi’s chief restructuring officer, supports the amended plan and emphasizes the importance of maximizing recovery for clients. However, technical modifications to the plan are still pending. This development marks a step forward for BlockFi but uncertainties persist as it navigates through bankruptcy proceedings.
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