BlockFi emerges from bankruptcy less than a year after FTX collapse

BlockFi announced Tuesday that it is emerging from bankruptcy.

The company can now seek assets it’s allegedly owed from FTX, Three Arrows Capital and “other companies” according to a statement. 

BlockFi says it will continue to distribute digital assets back to customers and “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.”

BlockFi said most wallet customers are able to withdraw assets and therefore can submit withdrawal requests. Additionally, BlockFi plans to start distributing assets to loan and BlockFi interest accounts customers. 

“Further updates on timing for this initial distribution will be sent in the coming months. We are aiming to begin initial distributions in early 2024. Any subsequent distributions will be dependent on many factors, including most notably any recoveries from FTX and its affiliates,” a post announcing the company’s emergence said.

Read more: Former BlockFi CEO blames FTX, Alameda for bankruptcy: SBF trial live updates

The assets will be distributed from the winding down of the BlockFi estate.

In late September, BlockFi announced that its Chapter 11 plan had been confirmed, and it was awaiting a hearing to finalize its emergence. 

Both the company’s management and the Committee of Unsecured Creditors supported the plan, with a 90% approval across all voting classes.

---

Get the news in your inbox. Explore Blockworks newsletters:

• The Breakdown: Decoding crypto and the markets. Daily.
• Empire: Crypto news and analysis to start your day.
• Forward Guidance: The intersection of crypto, macro and policy.
• 0xResearch: Alpha directly in your inbox.
• Lightspeed: All things Solana.
• The Drop: Apps, games, memes and more.
• Supply Shock: Bitcoin, bitcoin, bitcoin.