BlockFi emerges from bankruptcy less than a year after FTX collapse

BlockFi initially declared bankruptcy in November 2022

article-image

Formatoriginal/Shutterstock modified by Blockworks

share

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:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research Report Templates.png

Research

EtherFi, the largest liquid restaking protocol, is repositioning itself as a consumer-facing crypto neobank. Beyond staking, it is building a revenue mix around cards, vaults, and trading, aiming to capture sustainable front-end economics in DeFi. The shift highlights EtherFi’s ambition to expand from infrastructure into a full financial platform.

article-image

Legion’s reputation-based fundraising will expand through Kraken Launch, offering compliant and transparent token sales to global investors

by Blockworks /
article-image

Blockchain protocol introduces XPL token and zero-fee transfers as it targets global stablecoin adoption

by Blockworks /
article-image

With rate cuts priced in and deeper liquidity, it’s not surprising to see certain speculative assets getting a bid

article-image

Lending giant is moving to ERC‑4626 share accounting and preparing to shutter underperforming networks, with 86% of revenue on Ethereum mainnet

article-image

The payments firm introduces a USDC-based app on Stellar, aiming to modernize remittances in volatile currency markets

by Blockworks /
article-image

MarginFi fixed a flaw that could have let attackers borrow funds without repayment

by Blockworks /