BlockFi is pleased to announce that its bankruptcy plan (the “Plan”) is effective and the company has emerged from bankruptcy as of October 24, 2023 (the “Effective Date”).
BlockFi’s management, advisors and other stakeholders worked diligently over the past 11 months to reach this critical milestone. We are proud to say that BlockFi reached its Effective Date more quickly and efficiently than many other retail crypto companies.
What is Emergence?
After Emergence, BlockFi can officially begin enacting the actions detailed in the Plan, including repaying its creditors according to the terms of the Plan. As a reminder, the Plan will allow the company to do the following:
- Recoveries: Attempt to recover assets the company believes are owed to us by FTX, 3AC, and other companies and their bankruptcy estates. Success in this litigation could increase client recoveries.
- Withdrawals: Continue distributing digital assets back to clients, including to BIA holders.
- Claims: Continue the claims reconciliation process to ensure that client claims are accurately reflected in both asset class and amount and that clients receive fair and equitable distributions of remaining and recovered assets.
When will I get my digital assets returned to me?
Wallet customers: Withdrawals are currently available to nearly all Wallet customers. If you have not done so already, please login to BlockFi.com to submit a withdrawal request. More information can be found in our Wallet Withdrawal FAQs: https://blockfi.com/wallet-withdrawal-faqs/
BIA and Loan customers: Now that BlockFi has emerged from bankruptcy, the company can begin the wind-down as outlined in the Plan. The Plan Administrator and remaining employees are working as quickly as possible to prepare BlockFi for an initial distribution of available assets from the wind-down estate. Further updates on timing for this initial distribution will be sent in the coming months. We are aiming to begin initial distributions in early 2024. Any subsequent distributions will be dependent on many factors, including most notably any recoveries from FTX and its affiliates.
What do you need to do
For clients holding funds in BlockFi Interest Account (BIA) and Retail Loans: Over the coming months, you will receive an email prompting you to withdraw your funds based on the recovery amounts approved by the Plan. The company expects that this will be the first wave of distributions, which will be followed by additional distributions. The amount of subsequent distributions is subject to many factors, but primarily BlockFi’s treatment in the FTX bankruptcy cases.
For clients holding funds in BlockFi Wallet: At this time, the company is working through distributing funds to clients with assets in the BlockFi Wallet product. If you are eligible to withdraw and have not taken action yet, please submit a withdrawal request to receive your funds in crypto as soon as possible, before the Wallet withdrawal window closes on December 31, 2023 at 11:59 PM UTC.
Once the Wallet withdrawal window has closed, BlockFi will work to open withdrawals for an initial distribution of estate funds to BIA and Retail Loan holders.
We are committed to keeping you informed about operational updates as they arise.