BlockFi
has emerged from bankruptcy as of October 24, 2023. The company’s management,
advisors, and stakeholders have worked over the past 11 months to reach this milestone,
doing so with commendable speed and efficiency compared to many other retail
crypto companies.
With
its official emergence from bankruptcy, BlockFi can now commence the execution
of its detailed recovery plan. The plan outlines several crucial actions,
including:
Recoveries: BlockFi is set to initiate
legal proceedings to recover assets believed to be owed by FTX, 3AC, and other
entities and their associated bankruptcy estates. Success in these legal
battles could potentially enhance client recoveries.
Withdrawals: The company will continue to
distribute digital assets back to its clients, including those who hold BlockFi
Interest Accounts (BIA).
Claims: The claims reconciliation
process will persist to ensure that client claims are accurately reflected in
terms of asset class and amount. This aims to ensure fair and equitable
distributions of remaining and recovered assets.
Navigating
the BlockFi Recovery Plan: Key Information for Clients
Wallet
Customers:
Withdrawals are currently available to nearly all Wallet customers. Those
eligible for withdrawals are encouraged to log in to BlockFi’s website and
submit a withdrawal request. Additional information can be found in the Wallet
Withdrawal FAQs on the BlockFi website.
BIA
and Loan Customers:
With BlockFi’s emergence from bankruptcy, the
company is gearing up for the wind-down process, as outlined in the recovery
plan. The Plan Administrator and remaining employees are working to prepare
BlockFi for the initial distribution of available assets from the wind-down
estate.
While
the company is aiming to begin initial distributions in early 2024, subsequent
distributions will depend on various factors, including potential recoveries
from FTX and its affiliates.
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
Factors
Influencing Subsequent Distributions: A Closer Look
For
clients holding funds in BlockFi Interest Accounts (BIA) and Retail Loans, BlockFi will be sending
emails to guide them through the process of withdrawing their funds based on
the recovery amounts approved by the Plan.
The
company anticipates this will be the first wave of distributions, to…
