On September 26, 2023, Judge Michael A. Kaplan of the U.S. Bankruptcy Court for the District of New Jersey approved BlockFi's plan of liquidation. This plan, which was proposed by the company in March 2023, provides that BlockFi's customers will receive the return of their funds.
BlockFi's liquidation plan was approved by the company's creditors' committee, which is comprised of representatives of the various creditor groups. The committee supported the plan because it believes it is the best way for creditors to receive compensation.
The approval of BlockFi's liquidation plan is an important milestone for the company's customers. After months of uncertainty, they finally know they will receive their funds back.
#BlockFi owes up to $10 billion to more than 100,000 creditors, including $1 billion to its three largest creditors and $220 million to bankrupt cryptocurrency hedge fund Three Arrows Capital.
