A bankruptcy court in New Jersey to approve BlockFi’s liquidation plan, bringing customers one step closer to receiving at least a portion of their funds back.Â
Judge Michael Kaplan to approve the plan, which calls for BlockFi to sell off its assets and use the proceeds to repay its creditors, including customers, on September 26, 2023.
Customers could start receiving payments later this year, but the amount they receive will depend on a number of factors, including the outcome of BlockFi’s litigation with FTX and 3AC as well as the market value of BlockFi’s assets.
Also Read: BlockFi says FTX and 3AC Are Not Entitled to Repayments
According to the liquidation plan, unsecured creditors could receive between roughly 35% and 63% of what they’re owed. However, it’s important to note that this is just an estimate, and the actual amount could be higher or lower.
BlockFi wallet holders are eligible to withdraw 100% of their funds, regardless of the outcome of the liquidation plan. This is because wallet funds are considered to be customer property and are not subject to bankruptcy proceedings.
A Sept. 25 court filing shows that the BlockFi creditors committee acknowledged that the settlement likely reduced additional administrative fees and expenses that could have cut into the recoveries.
