BlockFi has emerged from bankruptcy as of October 24, 2023.
BlockFi filed for bankruptcy in November of 2022 following the collapse of multiple crypto firms culminating in the failure of FTX – once one of the largest crypto exchanges in the world. Prior to declaring bankruptcy, BlockFi had paused operations, seeking an alternative path. The company said it had explored every option to no avail and thus sought the path of seeking to maximize value for its shareholders.
BlockFi, previously a top crypto lender and yield platform, was once valued at $3 billion.
BlockFi said it will officially begin to pursue its Plan, to repay its creditors according. The company outlined the process:
- Recoveries: Attempt to recover assets the company believes are owed to us by FTX, 3AC, and other companies and their bankruptcy estates. Success in this litigation could increase client recoveries.
- Withdrawals: Continue distributing digital assets back to clients, including to BIA holders.
- Claims: Continue the claims reconciliation process to ensure that client claims are accurately reflected in both asset class and amount and that clients receive fair and equitable distributions of remaining and recovered assets.
The company said that withdrawals were immediately available to almost all wallet users.
BlockFi said will soon start returning assets to BIA and loan customers.