TechFlow news — According to official announcements, BlockFi stated that its bankruptcy plan became effective on October 24, 2023. BlockFi's management, advisors, and other stakeholders have worked diligently over the past 11 months to reach this critical milestone, achieving the effective date faster and more efficiently than many other retail-facing crypto companies.
Following emergence, BlockFi can now formally begin executing the actions detailed in the plan, including repaying its creditors according to the plan terms, enabling the company to undertake the following measures:
- Recoveries: Pursuing recovery of assets that the company believes are owed to BlockFi by FTX, 3AC, and other entities and their bankruptcy estates; success in these litigation efforts could increase customer recoveries;
- Withdrawals: Continuing to distribute digital assets back to customers, including BIA holders;
- Claims: Continuing the claims reconciliation process to ensure customer claims accurately reflect asset categories and amounts, and to ensure fair distribution of remaining and recovered assets to customers.
Currently, "nearly all wallet users" are eligible to withdraw funds. Customers who held funds in BlockFi wallets should submit withdrawal requests as soon as possible before the withdrawal window closes at 7:59 a.m. Beijing Time on January 1, 2024. For BlockFi Interest Account (BIA) holders and retail loan customers, the timing for the first asset distribution will be determined over the coming months, with the goal of making distributions in early 2024.
