BlockFi, one of the leading names in the cryptocurrency industry, announced that it officially emerged from bankruptcy on Tuesday, October 24, 2023.
The company will now be able to begin the process of repaying its creditors as detailed in the bankruptcy plan.
According to the company's statement, this point was reached after 11 months of work. Once it emerges from bankruptcy, BlockFi said it could begin formally implementing the actions detailed in its plan. These actions include:
- Recoveries: The company will seek to recover assets it believes are owed by FTX, 3AC and other companies and bankruptcy estates. Success in this case could increase customer recoveries.
- Withdrawals: BlockFi will continue to distribute digital assets back to customers, including BIA holders.
- Claims: The Company will continue the claims reconciliation process to ensure client claims are accurately reflected both by asset class and quantity.
Users with interest-bearing accounts on BlockFi will receive emails asking them to withdraw existing funds within the next few months, the company said. In the statement, it was stated that “the company expects this to be the first wave of distributions and to be followed by additional distributions. The amount of subsequent distributions is subject to many factors, especially BlockFi's status in FTX bankruptcy cases.”
*This is not investment advice.