PANews reported on July 26 that according to Finance Feeds, the bankrupt cryptocurrency lender BlockFi has been approved by the court to repay its customers and unsecured creditors. The New Jersey Bankruptcy Court approved the company's plan on Thursday, allowing BlockFi to repay 100% of customer funds. The cryptocurrency lender sought court approval to monetize its $874.5 million claim against FTX at an amount far above face value. The court's approval means that customers can now receive a full refund of their assets.
The company said that while asset recovery cannot undo the impact of the financial crisis, "effectively distributing 100% of the claim value to clients in the near future would be a very positive outcome." The company said final distributions to U.S. clients could begin within 90 days. International clients, however, may have to wait longer due to regulatory challenges.
BlockFi explained that clients outside the United States will be notified promptly and may be required to provide additional documentation to ensure their assets comply with Bermudaâs regulatory requirements. The company assured users that its plan administrators and joint liquidators are working with the relevant authorities to ensure a smooth distribution process for international clients.
