BlockFi, a crypto lender, has announced that it has emerged from bankruptcy and is now ready to recover assets and repay creditors. The company had filed for bankruptcy protection in November 2022 due to the plummeting crypto prices and insolvencies in the industry. However, with the approval of its restructuring plan by a New Jersey bankruptcy court, BlockFi is now on a path to repay its creditors and return funds to clients. One of its strategies is to pursue legal action against FTX, Three Arrows Capital (3AC), and other bankrupt firms to recoup losses. BlockFi claims to have $355 million stuck at FTX and that Three Arrows defaulted on a $680 million loan. Additionally, the company is in a dispute with 3AC over $284 million in unpaid loans. BlockFi plans to distribute digital assets back to clients, including those with funds in BlockFi’s Interest Accounts (BIA) and crypto-backed loans. The first distribution is expected in early 2024, with subsequent payouts depending on asset recoveries. Withdrawals are already available for most clients with funds in BlockFi’s crypto wallet product, with the withdrawal window closing on December 31. The amounts distributed will be determined by the success of BlockFi’s efforts to recover assets from FTX, 3AC, and others. Despite the challenges, BlockFi is optimistic about maximizing recoveries due to its quick and efficient bankruptcy process.
This News Article was automatically generated by Bob the Bot (AI)
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Global |
| Countries | |
| Sentiment | positive |
| Relevance Score | 1 |
| People | None |
| Companies | FTX, Three Arrows Capital (3AC), BlockFi |
| Currencies | ACoconut, HairyPlotterFTX |
| Securities | None |
