Crypto lender BlockFi Emerges From Bankruptcy, Now Moves To Unlock Withdrawals

BlockFi emerged from bankruptcy on Tuesday, nearly 11 months after it was swept away by the turbulence in the cryptocurrency industry following the collapse of FTX.
Crypto lender BlockFi Emerges From Bankruptcy, Now Moves To Unlock Withdrawals

In a recent development, BlockFi, a cryptocurrency lending platform, said this week that it is now allowing U.S. and foreign users to withdraw monies from their BlockFi wallets, a big step forward as the company recovers from bankruptcy.

On Monday, BlockFi revealed via Twitter that practically all Wallet clients can now withdraw money from their accounts. This comes after a US bankruptcy court authorized the company’s reorganization plan in August; however, withdrawals were barred at the time.

However, BlockFi can now continue to distribute assets to creditors and resolve claims after emerging from bankruptcy. The company announced that they can now pursue legal action to recover cash owed to them by third parties such as FTX and Three Arrows Capital.

BlockFi also encouraged wallet users to log in to the app and submit a withdrawal request in order to begin a withdrawal. The withdrawals will subsequently be processed appropriately by the team. Although disbursements to loan customers and BlockFi Interest Accounts do not appear to be accessible currently, the business anticipates that they will begin in early 2024.

BlockFi CEO Zac Prince stated:

With a clear route ahead of us, we are excited to continue growing a firm in which our clients can invest their faith and serve clients who have placed their trust in BlockFi.

The company stated that more information about withdrawal availability will be available soon.

Although clients had to wait months to access their funds again, the fact that the bulk of BlockFi Wallet users can now withdraw cryptocurrencies is a big step forward in the company’s recovery efforts.

However, as BlockFi continues to recover from its bankruptcy case, the time it takes for creditors to be reimbursed remains exceedingly protracted.

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