Crypto Lender BlockFi Cleared to Repay Customers Through Liquidation Plan
- Payments to BlockFi customers could start later this year
- BlockFi said creditor recoveries depends on FTX litigation
The liquidation plan was approved after BlockFi settled a dispute with the creditors committee over potential legal claims against the company’s senior management.
Photographer: Gabby Jones/BloombergThis article is for subscribers only.
Failed crypto lender BlockFi Inc. won bankruptcy court approval on its plan for shutting down its business, a milestone that could result in customers getting back a portion of what they’re owed by the end of the year.
Judge Michael Kaplan said during a hearing Tuesday he would approve BlockFi’s liquidation plan which was supported by a committee representing customer interests and creditors that voted to support it. Some BlockFi creditors are slated to receive partial repayment in Bitcoin or Ethereum, according to court documents.