BlockFi Emerges from Bankruptcy and Begins Reimbursement and Wind-Down Plan
During the recent crypto winter, BlockFi faced financial troubles following the collapse of TerraUSD. FTX stepped in to save the struggling company by providing a $400 million line of credit. However, FTX itself later crumbled due to poor decision-making and questionable accounting practices.
Now, after 11 months, BlockFi has announced that it has successfully exited bankruptcy procedures and is moving forward with its reimbursement and wind-down plan.
Withdrawals Now Available for International Users
While some BlockFi users based in the United States were able to withdraw funds as early as May 2023, international users had to wait until the bankruptcy plan was approved. Fortunately, the court recently gave the green light for international wallet users to start withdrawing their funds.
The withdrawal FAQ on BlockFi’s website has been updated to reflect this change, stating that international users with Wallet accounts are now eligible for withdrawals.
Updates for BIA and Loan Accounts Coming Soon
While wallet holders can now access their funds, owners of Loan and BlockFi Interest Accounts (BIA) will have to wait a little longer. In the coming months, these account owners will receive emails instructing them on how to withdraw a percentage of their funds as part of BlockFi’s recovery process.
Additional amounts may be made available depending on the outcome of BlockFi’s claims against FTX, 3AC, and others. The company remains committed to recouping as much as possible for BIA holders before winding down operations.
Hot Take: BlockFi Successfully Emerges from Bankruptcy
BlockFi has officially emerged from bankruptcy after a challenging 11-month period. The company’s management, advisors, and stakeholders worked diligently to reach this milestone, which was achieved more quickly and efficiently than many other retail crypto companies facing similar situations.
BlockFi will now focus on reimbursing users and winding down operations while continuing to pursue claims against FTX, 3AC, and others. This success demonstrates BlockFi’s resilience in the face of adversity and its commitment to protecting its users’ funds.
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