BlockFi, a cryptocurrency lending platform, has declared bankruptcy and said that it is now accepting withdrawal requests from users in the United States and other countries. This move enables the business to begin repaying some of its creditors. Nearly all Wallet clients can make withdrawals, and Blockfi Interest Account (BIA) and Loan users will be able to take out some of their assets in early 2024, according to a new blog post from BlockFi.
BlockFi’s emergence from bankruptcy enables the platform to pursue the recovery of assets from other firms it believes owe it money, including bankrupt crypto platforms like Three Arrows Capital (also known as “3AC”) and FTX. The company can also continue distributing assets to its creditors and processing claims.
![BlockFi Customers Can Finally Withdraw Their Funds image 130](https://i0.wp.com/nosisnews.com/wp-content/uploads/2023/10/image-130.png?resize=980%2C658&ssl=1)
![BlockFi Customers Can Finally Withdraw Their Funds image 130](https://i0.wp.com/nosisnews.com/wp-content/uploads/2023/10/image-130.png?resize=980%2C658&ssl=1)
The BlockFi team has encouraged Wallet customers with assets on the platform to log into the app and submit a withdrawal request, allowing for a seamless withdrawal process. For BIA and Loan customers, BlockFi is preparing for initial asset distributions as per the bankruptcy plan, with the first distributions expected in early 2024. Further distributions will occur after this initial phase, but the amount distributed will depend on BlockFi’s success in FTX bankruptcy litigation and other relevant factors.
BlockFi encountered liquidity issues in mid-2022 during the Terra stablecoin’s collapse. FTX came to BlockFi’s rescue with a $400 million credit line. However, FTX itself went bankrupt in November, causing BlockFi to follow suit. On August 17, a U.S. court approved a plan to wind down BlockFi and repay its creditors, allowing the company to repay U.S.-based Wallet customers. At that time, U.S. customers were not permitted to withdraw. It is now updated that international users can withdraw their funds from the BlockFi Wallet.
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