BlockFi, a cryptocurrency lending service, stated on Tuesday that it had successfully emerged from bankruptcy, indicating that its bankruptcy recovery plan was effective as of October 24.
BlockFi, a cryptocurrency lending service, stated on Tuesday that it had successfully emerged from bankruptcy, indicating that its bankruptcy recovery plan was effective as of October 24. While not all customers can be fully reimbursed at this time, the company's announcement kickstarts the process of collecting client assets and resolving customer claims with third parties.
BlockFi stated that it met the Effective Date of its recovery plan more quickly and efficiently than many other retail cryptocurrency startups. BlockFi intends to reclaim funds from bankrupt companies such as FTX, Alameda Research, which were allegedly involved in a multibillion-dollar fraud involving consumer assets. Three Arrow Capital’s $284 million claim against BlockFi was put into mediation on October 10.
Customers with custodial wallets can immediately request withdrawals, but customers with interest-bearing accounts (BIAs) and loans will likely get their first distributions in early 2024.
Let us know what you loved about this article, what could be improved, or share any other feedback by filling out this short form.
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators.
This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice.
The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap.
