The Reorganization of BlockFi

BlockFi has made considerable progress in its reorganization, with the U.S. Bankruptcy Court for the District of New Jersey giving its conditional approval for the disclosure statement. The company and the Official Committee of Unsecured Creditors have urged eligible parties to vote for the plan by Sept. 11. If the plan is approved, it will settle the Chapter 11 cases and return client funds.

BlockFi will then focus on recovering funds from several defunct firms, such as Alameda Research, FTX, Three Arrows Capital, Emergent, Marex, and Core Scientific. The goal is to maximize client recoveries and counter any claims that could reduce their assets.

The plan offers clients the chance to be released from any claims and causes of action that BlockFi may have against them, as long as they don’t opt out of the voluntary third-party release. This release applies to most clients, except those who withdrew more than $250,000 from BlockFi Interest Accounts (BIA) or BlockFi Private Client (BPC) Accounts on or after Nov. 2, 2022.

Furthermore, under the plan, BlockFi will not reclaim amounts under $250,000 that clients properly transferred from BIAs or BPCs to BlockFi Wallet, and withdrew from Wallet before the platform paused on Nov. 10, 2022. Clients with claims under $3,000, or those who choose to reduce their claim to $3,000, will be part of the convenience claim class and receive a one-time cash distribution from the BlockFi estate equal to 50% of their claim.

In June, the United States Securities and Exchange Commissionconsented to delay the collection of a $30 million fine from the bankrupt cryptocurrency lender until creditors are fully repaid. This sum constitutes the remaining balance of a $50 million settlement reached with the regulator in February 2022.

For those looking for the best crypto platform, BlockFi offers the cheapest crypto press release, and all crypto in one place. Additionally, AI bias ratings and AI research are also available for those interested in AI this week. To stay up to date with the latest news, the best crypto Twitter accounts are also recommended.

Categorized in:

Crypto

Tagged in: