BlockFi with Return Plan
Yesterday, Thursday, the bankruptcy administration of the collapsed cryptocurrency lending platform “BlockFi” announced its plans to return 100% of claims to affected customers.
The value of these claims will be calculated based on the date of bankruptcy and not on the current market value of cryptocurrencies.
This possible return was made possible by the success of BlockFi’s bankruptcy administrator in recovering outstanding claims against FTX in an amount exceeding the face value of those claims.
The announcement noted that although these recoveries the company cannot undo the impact of the temporary suspension of the platform, the effective distribution of 100% of the dollar value of allowed claims to eligible customers in the near future is a very positive result.
BlockFi declared bankruptcy at the end of November 2022 after the collapse of FTX.
Days before the bankruptcy filing, the exchange suspended withdrawals for users due to a lack of clarity about its financial situation with FTX.
For its part, FTX is also preparing to return more than 100% of claims to its defaulting creditors, after it was able to recover significant funds from the sale of its assets.
Other FTX creditors have also sold their claims, with European digital asset investment firm CoinShares earlier receiving a payout of £31.32 million on a claim worth £26.6 million.
BlockFi confirmed that it is working to make the final distributions as quickly as possible.
US-based creditors are expected to receive final distributions within the next 90 days, while international clients may have to wait longer.
US-based customers have been instructed to set up their Coinbase accounts before August 23 to receive their funds.
