BlockFi, the crypto service provider, announced that it has emerged from bankruptcy as of 24 October 2023. From this date, the company will be able to start implementing the actions described in the plan, including the repayment of creditors.
BlockFi: crypto services provider announces it has emerged from bankruptcy
BlockFi announced 24 October 2023 as the official date of the crypto service provider’s emergence from bankruptcy.
In its blog post, BlockFi explains how the entire management team, advisors and other stakeholders of the bankrupt company have worked diligently over the past 11 months to achieve this milestone.
In addition, the crypto services provider describes itself as the industry’s fastest and most efficient company to emerge from bankruptcy, which began with the FTX crypto exchange crisis.
From now on, BlockFi will be able to start implementing the actions outlined in the plan, including the repayment of creditors.
BlockFi: Crypto service provider can start repaying creditors
As part of the plan, the crypto services provider detailed how it intends to repay all of its outstanding customers.
Specifically, BlockFi said it would seek to recover assets from FTX, 3AC and other companies and their bankruptcy administrators, continue to distribute them to its creditor customers and begin the claims process.
In practice, depending on the type of customer, BlockFi has already outlined when and how they will be reimbursed.
For wallet customers, the company says that withdrawals are currently available for almost everyone. Anyone who has not yet done so should submit a request via the website.
The plan mentions BIA (BlockFi Interest Account) creditors and loans, and assures that from the beginning of 2024, after the company begins liquidation, it will be able to distribute available assets to them.
The crypto company also states that any subsequent distributions will depend on many factors, including in particular any recoveries from FTX and its affiliates.
The Chapter 11 plan
It was on 28 November 2022 that BlockFi filed for Chapter 11 bankruptcy protection in order to begin a restructuring process, despite having declared bankruptcy.
Moving forward in time, in August 2023, the bankrupt crypto provider moved forward with its Chapter 11 ‘plan’ and received conditional approval from the US Bankruptcy Court for the District of New Jersey.
Even then, the crypto service provider was urging all claimants to vote to accept the Chapter 11 plan by the deadline of 11 September 2023 in order to return customer funds.
And so, after just 11 months, BlockFi is ready to put the plan into practice.