BlockFi, the cryptocurrency lending platform, has successfully emerged from bankruptcy earlier than planned. This follows its suspension of withdrawals due to the FTX exchange's collapse. With this milestone, BlockFi can now execute its Reorganization Plan, which includes repaying creditors and those affected by the withdrawal suspension. The company will also work on recovering assets and loans owed by entities such as Three Arrows Capital (3AC) and FTX. The extent of client recoveries will depend on the success of BlockFi's litigation.
BlockFi will continue distributing digital assets to clients, including BlockFi Interest Account (BIA) holders, while also reconciling claims to ensure fair and equitable distributions. The bankruptcy judge has approved the repayment of up to $300 million to BlockFi custody wallet owners, and withdrawals have been restored for most customers. BIA holders and Retail Loans clients will receive emails in the coming months for withdrawing their funds based on the approved recovery amounts outlined in the Plan.