Defunct cryptocurrency lending platform BlockFi is set to start repaying its creditors in July, 19 months after filing for bankruptcy.
Collapsed crypto lending platform BlockFi will start repaying its creditors in July, nearly two years after the firm filed for bankruptcy amid the dramatic collapse of the FTX crypto exchange.
In an X post on Thursday, the New Jersey-headquartered firm said the distributions will be processed “in batches in the coming months” via Coinbase, adding that eligible clients will receive a notification to the BlockFi account email on file. However, it clarified that non-U.S. clients remain unable to receive funds due to regulatory requirements, with no specified timeline for these repayments.
For those who are unable to open a Coinbase account, BlockFi earlier assured that all distributions “will be made in cash.”
In March, BlockFi announced it is unlikely to fully repay customers with interest-bearing accounts. The company had previously estimated that these customers might recover between 39.4% and 100% of their account value. The crypto lending giant filed for Chapter 11 protection in November amid market volatility and substantial exposure to the defunct crypto exchange FTX. Less than a year later, BlockFi emerged from bankruptcy and is now working on repaying its creditors.
