Crypto lending platform BlockFi has emerged from bankruptcy and is ready to pay back some of its creditors, according to an October 24 blog post. Withdrawals “are currently available to nearly all Wallet customers,” the post stated, adding that Blockfi Interest Account (BIA) and Loan customers will be able to withdraw some assets in early 2024.
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
According to the post, BlockFi’s emergence from bankruptcy means that it can now attempt to recover assets from other firms it believes owe it money. This includes bankrupt crypto platforms such as Three Arrows Capital (also known as “3AC”) and FTX. The firm will also be able to continue distributing assets to its creditors and processing claims.
The team instructed Wallet customers with assets on BlockFi to log into the app and submit a withdrawal request, which will allow the team to process the withdrawal. As for BIA and Loan customers, BlockFi said it’s preparing for initial distributions in accordance with the bankruptcy plan. They expect the first distributions to be made in early 2024. Further distributions will be made after this point, but the amount of distributed funds will depend on BlockFi’s success in FTX bankruptcy litigation, among other factors.
Related: Crypto lender BlockFi gets court nod for plan to repay customers
BlockFi was a crypto lending platform that first ran into liquidity problems in mid-2022 as the Terra stablecoin collapsed. At the time, FTX
Go to Source to See Full Article
Author: Tom Blackstone
Tip BTC Newswire with Cryptocurrency
Donate Bitcoin to BTC Newswire
Donate Bitcoin Cash to BTC Newswire
Donate Ethereum to BTC Newswire
Donate Litecoin to BTC Newswire
Donate Monero to BTC Newswire
Donate ZCash to BTC Newswire
