BlockFi is excited to announce that its bankruptcy plan is now in effect, marking the company's emergence from bankruptcy on October 24, 2023. The company, its management, advisors, and various stakeholders have dedicated significant effort over the past 11 months to achieve this pivotal milestone. Notably, BlockFi has achieved this transition with remarkable speed and efficiency, setting it apart from many other retail crypto companies.
What Does "Emergence" Mean?
With the effective date of the bankruptcy plan, BlockFi can now proceed with the actions outlined in the plan. These actions include:
Recoveries: BlockFi will actively seek to recover assets it believes are owed by entities such as FTX, 3AC, and other companies and their associated bankruptcy estates. Success in this litigation has the potential to enhance client recoveries.
Withdrawals: The company will continue to distribute digital assets to its clients, including those holding BlockFi Interest Accounts (BIAs).
Claims: BlockFi is committed to the claims reconciliation process to ensure that client claims are accurately represented in terms of asset class and amount. The objective is to provide fair and equitable distributions of remaining and recovered assets to clients.
When Can Clients Expect Their Digital Assets?
Wallet Customers: For those holding digital assets in their wallets, withdrawal options are already available for the majority of Wallet customers. If you haven't done so yet, you can submit your withdrawal request by logging into BlockFi.com. Additional details can be found in the Wallet Withdrawal FAQs.
BIA and Loan Customers: With BlockFi's emergence from bankruptcy, the company can now commence the wind-down process outlined in the plan. The Plan Administrator and the remaining employees are diligently preparing for an initial distribution of available assets from the wind-down estate. Further updates regarding the timing of this initial distribution will be provided in the coming months, with the aim of initiating the process in early 2024. Subsequent distributions will depend on various factors, including recoveries from FTX and its affiliates.
Next Steps for Clients
For Clients with BlockFi Interest Accounts (BIAs) and Retail Loans: Over the next few months, you will receive an email prompting you to withdraw your funds based on the recovery amounts approved by the plan. This initial wave of distributions will be followed by additional distributions. The timing and number of subsequent distributions are subject to numerous factors, primarily BlockFi's treatment in the FTX bankruptcy cases.
For Clients with Funds in BlockFi Wallet: BlockFi is actively working on distributing funds to clients who have assets in the BlockFi Wallet product. If you are eligible for withdrawal and haven't done so yet. please submit your withdrawal request to receive your funds in cryptocurrency as soon as possible. The Wallet withdrawal window will close on December 31, 2023, at 11:59 PM UTC.
As BlockFi moves forward, it remains dedicated to ensuring the seamless transition and fair treatment of its clients during this period of emergence from bankruptcy. The company's commitment to delivering value to its users remains steadfast, and it looks forward to serving its clients with even more confidence and resilience in the future.