BlockFi, once a top crypto platform that eventually filed for bankruptcy, reported on X today that clients are now expected to receive 100% of outstanding (eligible) claims.
Part of the equation is the company’s claims against FTX, which were purchased by investors. FTX has already announced investors will be made whole following its failure.
BlockFi stated:
While these recoveries cannot undo the impact of the platform pause, efficiently distributing 100% of claim value to clients in the near future will be an extraordinarily positive outcome. The BlockFi Estate is working to make final distributions as quickly as possible while maintaining the safety of client assets. US clients may be able to start receiving their final distributions over the next 90 days.
International customers may have to wait a bit longer to receive their funds. To facilitate the distribution of funds, a partnership with Coinbase was established.
BlockFi filed for Chapter 11 bankruptcy in late 2022 following the collapse of FTX. The failure of other crypto firms like 3AC and Celsius had slammed BlockFi, but the collapse of FTX was the final straw.
At one point, BlockFi was valued at $3 billion in a funding round when the firm raised $350 million in the spring of 2021.
