Crypto Lender BlockFi Emerges from Bankruptcy, Begins Asset Recovery and Repayment Process

Asset recovery efforts are underway with withdrawals available for Wallet customers and repayments for Retail Loanholders to progress in the coming months; restitution amounts are contingent on the resolution of the FTX bankruptcy debacle.

• BlockFi emerged from bankruptcy nearly 11 months after the collapse of FTX, a sister firm to which BlockFi had issued loans.
• The company's recovery process involves attempts to recover assets it believes are owed by FTX, Three Arrows Capital and others, although these initiatives are likely to face contention given these companies' own bankruptcy statuses.
• Withdrawals have been made available to nearly all of BlockFi's Wallet customers, with repayments for those with BlockFi Interest Accounts and Retail Loans set to progress in the coming months.
• The restitution amounts customers receive could vary depending on the resolution of the FTX bankruptcy debacle.
• Following the recovery, BlockFi - like other crypto lenders who experienced a boom during the pandemic offering high returns for crypto deposits - will continue to wind down operations.

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