BlockFi, a cryptocurrency lending platform that ceased operations, is scheduled to commence creditor repayments in July. This comes 19 months after the company filed for bankruptcy.
The collapsed crypto lending platform BlockFi will begin repaying its creditors in July, nearly two years after filing for bankruptcy following the dramatic collapse of the FTX crypto exchange.
BlockFi Announces Repayment Plans via Coinbase
In an announcement posted on Thursday, BlockFi, headquartered in New Jersey, revealed plans to distribute repayments to creditors “in batches in the coming months” through Coinbase. Eligible clients will be notified via their registered BlockFi account email.
plans to distribute repayments to creditors – Source: X
International Clients Face Regulatory Hurdles: However, non-U.S. clients are currently unable to receive funds due to regulatory constraints, and there is no specified timeline for when these repayments might occur.
Alternative Distribution Assurance: For clients unable to open a Coinbase account, BlockFi previously assured that all distributions will be made in cash.
BlockFi’s Repayment Challenges and Emergence from Bankruptcy
In March, BlockFi disclosed that it may not fully reimburse customers holding interest-bearing accounts. Initially, the company had projected these customers might recover between 39.4% and 100% of their account balances.
The crypto lending giant filed for Chapter 11 protection in November due to market instability and significant exposure to the now-defunct crypto exchange FTX. Less than a year later, BlockFi emerged from bankruptcy proceedings and is currently focused on fulfilling its obligations to creditors.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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