BlockFi Emerges from Bankruptcy, Boosting Client Recoveries
BlockFi, a leading cryptocurrency lending platform, has successfully emerged from bankruptcy on October 24, 2023. The company’s management, advisors, and stakeholders have worked diligently to achieve this milestone more swiftly and efficiently compared to other retail crypto companies.
Implementation of Bankruptcy Plan
With its emergence from bankruptcy, BlockFi will now begin implementing its bankruptcy plan. This includes repaying creditors according to the terms outlined in the plan.
Actions Outlined in the Plan
The following actions will be carried out as part of the bankruptcy plan:
- Recoveries: BlockFi will aim to recover assets owed by entities such as FTX and 3AC. Successful litigation could potentially increase client recoveries.
- Withdrawals: Digital assets will be distributed back to clients, including BlockFi Interest Account (BIA) holders.
- Claims: The claims reconciliation process will continue to ensure fair distributions of remaining and recovered assets based on accurate client claims.
Withdrawal Process for BlockFi Wallet Customers
Customers with funds in BlockFi Wallet can currently initiate withdrawals. To begin the process, log in to BlockFi.com and submit a withdrawal request. Detailed information can be found in the Wallet Withdrawal FAQs provided by BlockFi.
Wind-Down Process for BIA Customers
The wind-down process for BIA and Loan customers is now underway as BlockFi emerges from bankruptcy. The Plan Administrator and remaining employees are working diligently to facilitate an initial distribution of available assets in early 2024. Subsequent distributions will depend on factors such as recoveries from FTX and its affiliates.
Important Deadlines
Eligible BlockFi Wallet holders must submit their withdrawal requests before the Wallet withdrawal window closes on December 31, 2023. After this, the focus will shift to opening withdrawals for BIA and Retail Loan holders to distribute estate funds.
Stay Informed
BlockFi will provide further updates on the timing and details of the distribution process as the company progresses through its post-bankruptcy phase. Clients will be communicated with regarding these updates.
Hot Take: BlockFi Rebounds Strongly from Bankruptcy, Prioritizing Client Recovery
BlockFi’s successful emergence from bankruptcy showcases its determination to overcome challenges and prioritize client recoveries. The company’s efficient implementation of its bankruptcy plan sets it apart from other crypto companies in terms of speed and effectiveness. With the ongoing efforts to recover assets and facilitate fair distributions, BlockFi aims to ensure that clients receive their rightful shares. The opening of withdrawals for BlockFi Wallet customers and preparations for the wind-down process for BIA customers demonstrate BlockFi’s commitment to providing timely access to funds. As BlockFi moves forward, it remains dedicated to keeping clients informed about the distribution process and maximizing client recovery in collaboration with FTX.
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