BlockFi Emerges From Bankruptcy, Announces Bankruptcy Recovery Plan
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.
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