BlockFi emerges from bankruptcy less than a year after FTX collapse

BlockFi initially declared bankruptcy in November 2022

October 24, 2023 01:42 pm

Formatoriginal/Shutterstock modified by Blockworks

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.

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.

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