BlockFi, one of the first crypto lenders to suffer the consequences of the collapse of the FTX exchange in November 2022, filed for Chapter 11 bankruptcy protection on November 28, 2022.
This filing came less than a month after suspending withdrawals from its platform. Since then, BlockFi has been working to obtain court approval to allow customers to withdraw their locked funds.
Distribution and Recovery Plan
In September 2023, creditors approved BlockFi’s bankruptcy restructuring plan. In early 2024, BlockFi reached an agreement with the estates of FTX and Alameda Research for nearly a billion dollars, bringing BlockFi closer to full fund recovery for its customers.
Distributions via Coinbase
BlockFi announced it will begin the first interim crypto distributions through Coinbase in July 2024. These distributions will be processed in batches in the coming months. Eligible customers will receive an email notification to the address associated with their BlockFi account.
It is important to note that non-U.S. customers will not be able to receive funds at this time due to applicable regulatory requirements. Those who have not withdrawn their funds before the previous deadlines can contact the bankruptcy administrator to use Coinbase for future distributions.
