BlockFi Emerges from Bankruptcy as of October 24, 2023
BlockFi, the crypto service provider, has officially announced that it has emerged from bankruptcy as of October 24, 2023. This marks a significant milestone for the company, as it can now begin implementing its plan to repay creditors.
The Journey to Recovery
Over the past 11 months, BlockFi’s management team, advisors, and stakeholders have worked diligently to achieve this milestone. The company describes itself as the fastest and most efficient in the industry to emerge from bankruptcy, which was triggered by the FTX crypto exchange crisis.
Repaying Creditors
As part of its plan, BlockFi intends to repay all outstanding customers. It will seek to recover assets from FTX, 3AC, and other companies and distribute them to creditor customers. The claims process will also begin during this time.
The company has already outlined the reimbursement process for wallet customers and states that withdrawals are currently available for most users. For BIA creditors and loan holders, distributions will begin in early 2024 after the liquidation process starts.
The Chapter 11 Plan
In November 2022, BlockFi filed for Chapter 11 bankruptcy protection and started its restructuring process. In August 2023, it received conditional approval from the US Bankruptcy Court for the District of New Jersey for its Chapter 11 plan.
BlockFi urged all claimants to vote in favor of accepting the plan by September 11, 2023, in order to return customer funds. Now, after just 11 months, BlockFi is ready to put its plan into action and move forward from bankruptcy.
Hot Take: BlockFi Bounces Back from Bankruptcy
BlockFi, the crypto service provider, has successfully emerged from bankruptcy after months of hard work and planning. This achievement positions BlockFi as a fast and efficient player in the industry. With its plan now in motion, the company can begin repaying its creditors, ensuring that outstanding customers are reimbursed for their investments.
This recovery comes after BlockFi faced challenges following the FTX crypto exchange crisis. However, through careful management and collaboration with stakeholders, BlockFi has overcome these obstacles and is now ready to move forward.
The emergence from bankruptcy is a testament to BlockFi’s resilience and commitment to its customers. As it enters this new chapter, BlockFi aims to restore trust and continue providing reliable crypto services to its users.
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