BlockFi can begin repaying creditors after emerging from bankruptcy

Quick Take

  • BlockFi said Tuesday that it officially has emerged from bankruptcy.
  • The company can now begin repaying creditors.

Crypto lending firm BlockFi, which was forced to halt withdrawals last year after the collapse of the FTX exchange, said Tuesday that it has officially emerged from bankruptcy in a move that will allow it to start repaying creditors. 

"BlockFi’s management, advisors and other stakeholders worked diligently over the past 11 months to reach this critical milestone," the company said in a blog post. "We are proud to say that BlockFi reached its Effective Date more quickly and efficiently than many other retail crypto companies."

Planned wind-down

BlockFi, which has been working on the bankruptcy plan for months, said it can now begin a planned wind-down and attempt to recover assets from companies including FTX and Three Arrows Capital. It will continue to distribute digital assets back to clients, and withdrawals are currently available to "nearly all Wallet customers."


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Users that had interest-yielding accounts on BlockFi will receive emails prompting them to withdraw available funds in the next few months, the company said.

"The company expects that this will be the first wave of distributions, which will be followed by additional distributions. The amount of subsequent distributions is subject to many factors, but primarily BlockFi’s treatment in the FTX bankruptcy cases," it added.

© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

Anna is a senior policy reporter and assistant editor at The Block. She has a background in political journalism and covered Russian civil society for a range of news outlets in Moscow, including the award-winning newspaper Novaya Gazeta. Before joining The Block, Anna spent the past five years investigating cryptocurrency policies and adoption around the world at CoinDesk. Anna owns bitcoin and a gift NFT of sentimental value.


To contact the editor of this story:
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