The company previously opened its claims process to BlockFi wallet users.

According to an email sent to users on September 30, BlockFi’s restructuring plan has been approved by the company’s management and creditors committee.

In that email, BlockFi wrote:

“We are pleased to announce that our Chapter 11 plan was confirmed on Tuesday, September 26, 2023. Through the voting process … we received overwhelming support for the plan, with support exceeding 90% in all voting categories.”

The company went on to say it “worked diligently” with members of the Unsecured Creditors Committee (UCC) to reach the agreement.

BlockFi said the plan would allow it to recover assets owed to it by FTX, Three Arrows Capital (3AC), and others. This part of the restructuring process has been complicated by the fact that both FTX and 3AC recently raised objections to BlockFi’s rehabilitation plan. Some of the objecting parties apparently intend to pursue claims against BlockFi as well.

BlockFi also said that the finalized plan will allow it to continue distributing cryptocurrency to affected users. Approval of the plan will also allow it to continue its claims process, ensuring that users receive the appropriate amount of funds.

The approval of the plan also means that BlockFi will soon be able to emerge from bankruptcy and wind down its operations. This happens when the plan goes into effect and a foreign court recognizes that the plan has been approved by the U.S. bankruptcy court.

BlockFi stopped withdrawals and filed for bankruptcy in November 2022. Reports at the time said the company owed more than 100,000 creditors between $1 billion and $10 billion.

More users will soon get withdrawal service

The latest development means that another group of BlockFi users will be able to claim compensation for the first time since the company's collapse.

BlockFi said that customers holding funds in BlockFi Interest Accounts (BIAs) or retail loans will soon receive emails with withdrawal instructions. The company said the process will begin in the coming months, but did not provide any exact start date.

The company added that after the first distribution, the amounts of subsequent distributions will likely be determined based on the outcome of the FTX bankruptcy case.

BlockFi also noted that BlockFi wallet withdrawals are currently ongoing. It urged users to submit requests to receive crypto funds while the withdrawal period remains open, with the company opening withdrawals to wallet users on August 17. #BlockFi #重组