BlockFi has successfully resolved its bankruptcy situation and surprised everyone by announcing its return to regular operations and allowing withdrawals earlier than expected.
The troubled cryptocurrency lending platform, BlockFi, which had to stop withdrawals due to issues with FTX, has just declared its return from bankruptcy. This happened sooner than anticipated and aligns with their bankruptcy plan’s success.
BlockFi’s Remarkable Return from Bankruptcy
After overcoming the challenges stemming from the FTX situation, BlockFi is now able to put its Reorganization Plan into action. This includes repaying its creditors and those affected by the suspension of BlockFi’s services as per the plan’s terms.
BlockFi’s management and stakeholders have worked hard for the past 11 months to reach this milestone, and they are proud of achieving it efficiently compared to many other crypto companies.
BlockFi can also now start the process of recovering assets and loans from entities like Three Arrows Capital (3AC) and FTX. The amount clients will recover depends on the outcome of BlockFi’s legal actions. Notably, a financial document earlier this year revealed that BlockFi has more than $1.2 billion tied to SBF’s FTX and Alameda Research.
The company will continue distributing digital assets to clients, including BlockFi Interest Account (BIA) holders. The process of reconciling claims for clients will proceed without interruption, ensuring that all claims are accurately reflected in both the type and amount of assets. This is to make sure all clients receive a fair and equitable share of remaining and recovered assets.
BlockFi Restarts Withdrawals
The bankruptcy judge has given the green light for the repayment of up to $300 million to BlockFi custody wallet owners. Most wallet customers have already been able to access their accounts, and they can now make withdrawals. All they need to do is log in to BlockFi.com and request a withdrawal.
As for BlockFi Interest Account (BIA) holders and Retail Loans clients, they’ll receive an email in the coming months with instructions on how to withdraw their funds according to the approved recovery amounts outlined in the Plan.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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