[NEWS] BlockFi emerges from bankruptcy and will begin repaying debtors

BlockFi, which provided cryptocurrency lending services, announced on the 24th that it had emerged from bankruptcy on the same day.

This means that it can now officially begin a bankruptcy plan, including repayments to debtors. Specifically, it says that it can now carry out three plans: "recovery," "withdrawal," and "claim."

In the recovery phase, it will work to recover assets held by FTX, 3AC (Three Arrows Capital), which went bankrupt last year, and other companies and their bankruptcy estates that are believed to belong to BlockFi. BlockFi explained that if the recovery is successful, the amount of repayments to customers may increase.

In addition, in the withdrawal phase, it will continue to repay customers as it has done so far. In addition, in the claim phase, it said that it will continue the claim reconciliation process to ensure that customer claims are accurately reflected in both the type and amount of assets and are distributed fairly and equitably.

Regarding the timing of repayment of customer assets, BlockFi says that almost all regular wallet users will be able to withdraw their assets.

Meanwhile, BlockFi explained that it will prepare to repay users who held assets in BIA (BlockFi Interest Account) and retail loans as quickly as possible. At present, it aims to start the first repayments in early 2024, and will send an update in the coming months.

As for BIA and retail loan users, it will depend on many factors, including recovery from FTX, 3AC, etc. In addition, BlockFi urges users who held assets in its "BlockFi Wallet" to apply for withdrawals as soon as possible, as the withdrawal window will close at 11:59 pm local time on December 31, 2023.

In November last year, BlockFi announced that it would suspend withdrawals of customer assets due to the impact of FTX's bankruptcy. It then filed for Chapter 11 (Chapter 11 of the U.S. Bankruptcy Code).

According to the filing, BlockFi has more than 100,000 creditors and total assets and liabilities ranging from $1 billion to $10 billion.

Source:Announcement
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