BlockFi Clients Can Now Submit Withdrawal Requests as Bankruptcy Plan Takes Effect

BlockFi FTX USA
Last updated:
Author
Author
Jai Pratap
About Author

Jai serves as the Asia Desk Editor for Cryptonews.com, where he leads a diverse team of international reporters. Jai has over five years of experience covering the web3 industry.

Last updated:
Why Trust Cryptonews
Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews
Source: Pixabay

The US-based crypto lending company BlockFi has emerged from bankruptcy, allowing clients to begin the process of withdrawing their assets. 

This development comes nearly 11 months after BlockFi was caught in the turbulence of the cryptocurrency industry, triggered by the disastrous collapse of FTX. 

BlockFi’s Bankruptcy Plan Takes Effect

BlockFi has announced that it is winding down operations and returning crypto assets to its customers. 

Furthermore, it is actively pursuing additional payments through the bankruptcies of other crypto companies, including FTX and Three Arrows Capital, as stipulated in the bankruptcy plan approved in court last month.

The outcome of these litigations could significantly impact client recoveries, as BlockFi seeks to restore its financial stability. 

In its recent court filings, the company estimated that customers with interest-bearing Earn accounts could recover between 39.4% and 100% of the value in their accounts, providing some optimism for those affected.

BlockFi’s initial bankruptcy filing in November 2022 had pointed to its loans to FTX’s sister firm, Alameda, as one of the contributing factors to its collapse. 

Meanwhile, FTX founder Sam Bankman-Fried is currently on trial for fraud in Manhattan, adding a layer of complexity to the ongoing situation.

BlockFi Clients Can Submit Withdrawal Requests

While withdrawals are currently available to almost all of BlockFi’s Wallet customers, those with BlockFi Interest Accounts and Retail Loans can expect repayments in the coming months. 

However, the amounts received may be contingent on the outcome of the FTX bankruptcy proceedings.

For BlockFi Wallet customers, withdrawal requests can currently be submitted, and the withdrawal window closes at 23:59 UTC on December 31, 2023.

More Articles

Price Analysis
$TRUMP Pumping Over 20% This Week: Presidential Memecoin Back for Good?
Arslan Butt
Arslan Butt
2025-02-15 15:26:50
Price Analysis
Study Predicts Bitcoin Surge to $1M by Early 2027: Is That Possible?
Arslan Butt
Arslan Butt
2025-02-15 14:45:43
Crypto News in numbers
editors
Authors List + 66 More
2M+
Active Monthly Users Around the World
250+
Guides and Reviews Articles
8
Years on the Market
70
International Team Authors