BlockFi Administrator Submits Plan in Court to Make Customers Whole
Summary
Crypto lender BlockFi's administrator is seeking an order for final distribution to all eligible customers and unsecured creditors. The administrator has closed a transaction that allows them to monetize $874.5 million in claims against FTX at a premium to their face value. BlockFi was affected by the collapse of crypto exchange FTX in November 2022 and filed for Chapter 11 bankruptcy protection later that month. The company then started the process of asking the court to approve customer withdrawals that were locked up in the platform. BlockFi plans to start the first interim crypto distributions through Coinbase in July 2024.
