A crypto lending platform that stopped customer withdrawals last year amid the FTX crisis says it will now be able to pay its creditors after emerging from bankruptcy.

BlockFi filed for bankruptcy on November 28th, 2022 after sustaining big financial losses from the implosion of crypto exchange FTX, one of its top borrowers.

Nearly a year after its collapse, the company says its recovery plan has worked.

“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.”

BlockFi says the emergence will allow it to recover funds from its borrowers and their bankruptcy estates, distribute assets back to its clients and continue with the claims reconciliation process.

The company also says it is now working to enable its qualified customers to withdraw their funds that were frozen on the BlockFi Wallet.

“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.”

Generated Image: Midjourney

The post BlockFi Says It Has Emerged From Bankruptcy, Kicks Off Wallet Withdrawals for Eligible Clients appeared first on Crypto News Australia.

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Filed under: Bitcoin - @ October 26, 2023 7:13 pm