BlockFi Wins Court Approval to Fully Repay Customers and Unsecured Creditors After Nearly Two Years
BlockFi, the beleaguered cryptocurrency lender, has received court approval to repay 100% of customers’ funds and unsecured creditors after nearly two years of financial turmoil and legal battles.
The US Bankruptcy Court for the District of New Jersey granted this approval, marking a significant milestone in BlockFi’s journey to make its customers whole.
BlockFi has finally won court approval to fully repay its customers and unsecured creditors, closing a prolonged chapter of uncertainty.
The court’s decision on Thursday allows the company to return 100% of customers’ assets, a development that follows BlockFi’s filing to monetize $874.5 million in claims against FTX .
On July 25, 2024, BlockFi announced it had sold its claims against FTX to a third-party claims purchaser. This transaction, part of a broader settlement, included secured, unsecured, and customer claims executed at a premium over their face value.
This approval sets the stage for BlockFi customers to receive their funds fully.
The company shared on X to acknowledge the pain its customers endured due to the suspension of deposits and withdrawals in 2022.
BlockFi expressed that while the asset recovery cannot undo the past financial crisis, efficiently distributing 100% of claim value to clients is an extraordinarily positive outcome.
While these recoveries cannot undo the impact of the platform pause, efficiently distributing 100% of claim value to clients in the near future will be an extraordinarily positive outcome.
— BlockFi (@BlockFi) July 25, 2024
The company assured users that its Plan Administrator and Joint Liquidators are collaborating with relevant authorities to ensure a smooth distribution process for international customers.
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