BlockFi revealed that it has emerged from the bankruptcy court having received approval for its restructuring plan from all relevant stakeholders.
Nearly 11 months after first declaring bankruptcy, crypto lender blockfi has now officially begun the process of closing down its operations. In line with this, the company has asked its wallet users to submit withdrawal requests on its website to claim their funds. However, there is a deadline of December 31 for requests.
In an October 24 announcement, BlockFi revealed that it has emerged from bankruptcy court having received approval for its restructuring plan from all relevant stakeholders.
However, part of its plans may also include obtaining additional payments from companies it allegedly owes as well. Recall that BlockFi secured approval for its bankruptcy plan in September, which would allow it to recover assets from other bankrupt crypto companies such as FTX Exchange and now-defunct crypto hedge fund Three Arrows Capital (3AC). Therefore, there is every possibility that customer recoveries may increase, BlockFi said on Tuesday.
According to BlockFi estimates, customers who have interest-earning accounts should expect to see between 39.4% and 100% of the value held in their accounts. While it confirmed that returns will be facilitated in the coming months, BlockFi also revealed that the amount of money customers will receive will largely depend on the amount recovered from FTX’s bankruptcy.
Crypto lender BlockFi to shut down, but there may be hope for creditors
As the first Coinspeaker informed of, BlockFi filed for bankruptcy last November. At the time, it attributed a loan to FTX’s sister firm Alameda as one of the main reasons for its collapse.
However, all hope may not be lost for BlockFi’s creditors. At the time of publication, Bitcoin (B T c) is trading at $33,900.88, up 18.8% over the last 7 days. This is according to CoinMarketCap data, And, although the gains may be linked to growing optimism that a spot Bitcoin ETF may soon be approved, many creditors affected by bankruptcies in the crypto industry will enjoy the ongoing rally.
Mayowa is a crypto enthusiast/writer whose conversational character is quite evident in his writing style. He strongly believes in the potential of digital assets and takes every opportunity to reiterate it. He is also a reader, a researcher, an astute speaker and a budding entrepreneur. However, away from crypto, Mayowa’s imaginary distractions include discussing football or world politics.
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