The lending platform BlockFi has completed preparations for bankruptcy and is ready to begin paying funds to creditors.
See more
BlockFi is pleased to announce that its bankruptcy plan (the “Plan”) is effective and the company has emerged from bankruptcy as of October 24, 2023 (the “Effective Date”).
— BlockFi (@BlockFi) October 24, 2023
The first distribution is scheduled for early 2024.
Almost all clients of custodial accounts now have the opportunity to withdraw assets.
Users who had interest-bearing accounts and loans will receive emails inviting them to withdraw their available funds in the next few months. The process will be launched after the closure of obligations to the first category of clients.
The final amount of compensation depends on the outcome of proceedings with bankrupt FTX, hedge fund Three Arrows Capital and other companies. The total volume of claims against them reaches $1 billion.
In September BlockFi received court approval to carry out a plan to close the business. Clients can expect a return of 35–63% of the debt amount.
According to the documents, some recipients expect payments in Bitcoin and Ethereum.
As a reminder, in November 2022, the firm filed for bankruptcy under Chapter 11 of the US Bankruptcy Code. This happened about two weeks after the collapse of FTX and Alameda Research. Prior to this, BlockFi admitted that the exchange and its subsidiary had outstanding obligations to the company.
Previously, the court allowed the platform to return $300 million to users of custodial accounts.
Subscribe to ForkLog on social networks
Found an error in the text? Select it and press CTRL+ENTER
ForkLog newsletters: keep your finger on the pulse of the Bitcoin industry!
2023-10-25 15:05:25
#BlockFi #completed #preparations #bankruptcy #ForkLog
