BlockFi Creditors Approve Bankruptcy Plan, Paving Way for Asset Recovery and Increased Payouts

BlockFi's creditors approved its bankruptcy restructuring plan, a key step towards finishing its wind-down.
The plan will allow BlockFi to recover assets lost to FTX and Three Arrows Capital.
This could increase payouts to creditors, depending on product and jurisdiction.
BlockFi Interest Account and Retail Loan holders may get funds in the next few months.
A bankruptcy court must still approve the plan to finalize it.

coindesk.com

Relevant topic timeline:

9/9/2023

FTX Bankruptcy Claim Deadline Sept. 29; Investors Can Recover Lost Funds By Filing Online

Investors who lost money when FTX went bankrupt can now file claims to recover their funds by September 29, 2023.

9/22/2023

Investors Bet on FTX Bankruptcy Claims, Pour Over $250 Million into Distressed Assets

Investors are rushing to buy FTX debts in the bankruptcy claims market, with major credit investors purchasing over $250 million worth of FTX debts, betting on the potential value that could be unlocked once the bankruptcy process is resolved.

9/26/2023

BlockFi Bankruptcy Plan Approved, Bringing Creditors Closer to Repayment But Concerns Remain Over FTX Ties

BlockFi's liquidation plan has been approved by a US bankruptcy court, bringing the crypto lending platform one step closer to repaying its 100,000-plus creditors.

9/28/2023

FTX Payout Prospects Surge to 37 Cents per Dollar As $7B+ Asset Recovery Fuels Frenzied Demand for Bankruptcy Claims

FTX creditors are expected to receive a significantly higher payout after the recovery of over $7 billion in assets, including a stake in Anthropic and the potential restart of the exchange, boosting the bankruptcy claims market.

10/13/2023

BlockFi Lost Over $1 Billion in Loans to Alameda Before Its Collapse

BlockFi CEO Zac Prince testified that his lending firm was forced to declare bankruptcy due to its involvement with FTX and Alameda Research, with BlockFi losing over a billion dollars in total. Alameda Research borrowed more than $1 billion from BlockFi, repaying it and then borrowing an additional $850 million before ultimately collapsing.

10/17/2023

FTX Proposes Returning Majority of Customer Funds, Though Payouts May Vary

Bankrupt crypto exchange FTX has proposed a plan to return up to 90% of creditor holdings by dividing missing customer assets into three pools and offering settlements without reduction for preferences under $250,000, but exclusions may apply for insiders and affiliates involved in misconduct.

10/23/2023

FTX Bankruptcy Deal Could Return Up to 90% of Assets to Creditors

Lawyers representing some creditors of defunct cryptocurrency exchange FTX are trying to secure a deal that would pay investors up to 90% of the remaining assets, with the approval rate of 75% required by December 1st and a goal to clear bankruptcy by July 2024.

10/24/2023

BlockFi Re-Opens Withdrawals, Lets Users Access Funds After Emerging from Bankruptcy

Crypto lending platform BlockFi has emerged from bankruptcy and is now allowing both U.S. and international users to submit withdrawal requests, with plans to repay creditors and attempt to recover assets from other firms.

Topics

Posted 9/29/2023, 8:59:00 PM