BlockFi Emerges From Bankruptcy—What You Need To Know

October 25, 2023 1:53 pm Comments

BlockFi has emerged from bankruptcy and has resumed customer withdrawals.

This is welcome news to customers and clients of the crypto-lending platform, who were trapped and could not withdraw funds from the platform that had previously been locked.

ProCoin News previously reported that BlockFi went bankrupt in the wake of the FTX collapse.

Coin Market Cap and Zero Hedge thought the timing was rather curious: “BlockFi, a cryptocurrency lending service, stated on Tuesday that it had successfully emerged from bankruptcy, indicating that its bankruptcy recovery plan was effective as of October 24.”

According to Daily Coin:

BlockFi emphasized the immediate accessibility of its withdrawal services to users, encouraging those who have yet to take this step to log in to the company website and initiate a withdrawal request.

The company will enter its wind-down phase, adhering to the roadmap in its plan to prepare BlockFi for the initial distribution of available assets.

Over the next months, clients holding funds in BlockFi Interest Accounts (BIA) and Retail Loans will receive emails on how to withdraw funds by the approved recovery amounts.

Multiple outlets have since confirmed that BlockFi has indeed emerged from bankruptcy and is resuming customer withdrawals for pretty much every single customer, with a few exceptions.

Coin Telegraph had more:

The team instructed Wallet customers with assets on BlockFi to log in to the app and submit a withdrawal request, which will allow the team to process the withdrawal.

As for BIA and Loan customers, BlockFi said it’s preparing for initial distributions in accordance with the bankruptcy plan. They expect the first distributions to be made in early 2024.

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