BlockFi Clients Can Now Submit Withdrawal Requests as Bankruptcy Plan Takes Effect

The US-based cryptocurrency lending firm BlockFi has emerged from bankruptcy, allowing clients to begin withdrawing their assets. This positive development comes after a nearly 11-month period of uncertainty following the fallout from the FTX cryptocurrency collapse.

BlockFi is currently winding down operations and returning digital assets to its clients as part of its bankruptcy plan. BlockFi is seeking further payments through ongoing litigations involving cryptocurrency entities like FTX and Three Arrows Capital.

The results of these legal proceedings are anticipated to influence asset recoveries for impacted customers and aid BlockFi’s financial recovery.

Client Recovery: Hope Amidst BlockFi’s Bankruptcy Turmoil

Recent BlockFi court submissions suggest 39.4% to 100% recovery potential for customers with interest-bearing Earn accounts.

BlockFi’s November 2022 bankruptcy filing cited its significant loans to Alameda, a sister company of FTX, as the main cause. Meanwhile, The ongoing fraud trial of FTX founder Sam Bankman-Fried in Manhattan complicates the unfolding situation further.

While the withdrawal process is currently accessible for nearly all of BlockFi’s Wallet customers, individuals with Interest Accounts and Retail Loans can expect their repayments in the coming months. However, the amounts received may be contingent upon the resolution of the ongoing FTX bankruptcy proceedings.

For BlockFi Wallet customers, the window for submitting withdrawal requests is open and will remain so until 23:59 UTC on December 31, 2023.