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Customers of failed crypto lender BlockFi may soon be able to recoup a portion of their frozen crypto assets after a bankruptcy court judge reportedly greenlit the firm\u2019s liquidation plan.<\/p>\n
BlockFi stopped allowing its customers to make withdrawals in November 2022, citing a lack of clarity from FTX, one of the lending platform\u2019s biggest borrowers.<\/p>\n
According to a new report<\/a> from Bloomberg, Judge Michael Kaplan said during a hearing on Tuesday that he will approve the liquidation plan that would see unsecured BlockFi creditors getting around 35% to 63% of the funds they are owed and some creditors receiving partial repayments in Bitcoin (BTC<\/a>) and Ethereum (ETH<\/a>).<\/p>\n The outcome of BlockFi\u2019s legal battles against FTX, crypto hedge fund Three Arrows Capital and other bankrupt digital asset firms, though, could potentially increase creditors\u2019 recoveries by up to $1 billion.<\/p>\n Kaplan approved the liquidation plan after BlockFi\u2019s senior management and the creditors\u2019 committee settled their dispute stemming from accusations that the management ignored the red flags of FTX.<\/p>\n In a court filing, the committee says the settlement will avoid the administrative expenses that could reduce the amount that BlockFi customers would get.<\/p>\n The report says the committee hopes the repayments will begin sometime this year.<\/p>\n Don’t Miss a Beat \u2013 Subscribe<\/a> to get email alerts delivered directly to your inbox <\/span><\/em>
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