BlockFi initially halted withdrawals and filed for bankruptcy in November 2022.

BlockFi announced on Oct. 24 that it had emerged from bankruptcy protection and could now implement various parts of its bankruptcy plan, including winding down.

BlockFi said it will continue to allocate client assets. It noted that wallet customers can currently request withdrawals and can do so until the December 31 withdrawal window closes, having initially opened in August.

The company added that it intends to allow BlockFi Interest Account (BIA) and retail loan customers to make withdrawals through a separate process starting in early 2024. BlockFi said it will send updates on this part of the process in the coming months. BlockFi also noted that it expects multiple waves of distributions and said such assets will come from its phased-out process.

BlockFi added that it will continue its claims reconciliation process to ensure claims are accurate and that customers receive a fair amount of funds.

Finally, BlockFi said that its recovery plan was developed to enable it to recover assets owed by FTX, Three Arrows Capital (3AC), and others. BlockFi said that successful litigation could increase the amount of damages awarded to claimants. Several parties have disputed BlockFi’s claims, and the merits of BlockFi’s case are unclear.

BlockFi filed for bankruptcy in November last year

BlockFi initially halted withdrawals and filed for bankruptcy in November 2022. At the time, the company cited problems with the FTX empire (which later led to FTX’s own bankruptcy) as the reason for ceasing service.

BlockFi maintains an extensive lending relationship with FTX. BlockFi’s bankruptcy filing indicated that it owed FTX $275 million. However, later developments showed that BlockFi had $1.2 billion in assets and loans with FTX and Alameda. Notably, BlockFi CEO Zac Prince testified on October 14 regarding the mutual assistance arrangement in the criminal case of former FTX CEO Sam-Bankman.

BlockFi’s bankruptcy filing also states that the company owes at least 100,000 creditors and former customers as much as $10 billion. #贷款  #BlockFi