BlockFi, a prominent crypto lending platform, has announced its successful emergence from bankruptcy, marking a significant turning point for the company. The recovery comes nearly a year after BlockFi filed for bankruptcy in the wake of significant financial losses resulting from the collapse of crypto exchange FTX, one of its top borrowers.
In a statement, BlockFi revealed that its bankruptcy plan, which was carefully crafted over the past 11 months, has proven effective, and the company officially emerged from bankruptcy on October 24, 2023. The company’s management, advisors, and stakeholders have worked diligently to achieve this critical milestone, doing so more quickly and efficiently than many other retail crypto companies.
BlockFi’s emergence from bankruptcy is expected to enable the recovery of funds from its borrowers and their associated bankruptcy estates. It will also facilitate the distribution of assets back to its clients and support the ongoing claims reconciliation process.
Furthermore, BlockFi is actively working on allowing qualified customers to withdraw their previously frozen funds from the BlockFi Wallet. Eligible clients are encouraged to initiate withdrawal requests promptly to receive their funds in cryptocurrency. The Wallet withdrawal window is open until December 31, 2023, at 11:59 PM UTC.
BlockFi’s successful recovery signifies a positive step forward, and the company is focused on resuming its operations and providing necessary support to its clients and stakeholders.