BlockFi team confirmed that the company emerged from bankruptcy & customers can submit a withdrawal requests.
BlockFi was a popular crypto lending platform. This platform was providing lending & loan services to the customers on behalf of the crypto holdings on the BlockFi platform. In Nov of last year, BlockFi filed for Chapter 11 bankruptcy, just after the bankruptcy filing of the FTX crypto exchange, as this crypto lender had a $400M line of credit from FTX.US.
On 24 Oct 2023, BlockFi annnoucment that the company emerged from bankruptcy and proceeding with a new effective plan, thanks to the company’s past 11 months of hard work in which the management, advisors, and other stakeholders worked diligently to get out of this situation.
Here it doesn’t mean that the company has enough amount of funds to give withdrawal to all of the customers but here this crypto lender is ready to conduct its attempts to take money back from all those companies who owes its funds, including bankrupt crypto hedge firm Three Arrow Capital (3AC) & bankrupt crypto exchange FTX.
For now, all the customers are open to submitting their withdrawal request through the BlockFi app, and after that BlockFi team will work on that request. The initial withdrawals will start from the beginning of 2024.
Here it is clear that BlockFi is confident with its plans to bring customers’ money back but it will not be enough because there are several factors, as the companies from which BlockFi wants to take money are already under bankruptcy. In short, here we can pray for BlockFi’s plan & also for the former BlockFi customers who lost funds with BlockFi’s bankruptcy.
As per reports, the FTX exchange currently has more than $7 billion worth of funds including $3.5 billion worth of crypto assets. So there are chances that BlockFi can get success to recover funds from FTX but from other companies will be very tough as the majority of the collapsed companies failed to recover even small funds back.