Customers of bankrupt cryptocurrency lending platform BlockFi are one step closer to receiving payment after a US Bankruptcy Court in New Jersey approved its liquidation plan.
Bankruptcy Judge Michael A. Kaplan approved BlockFi's third amended Chapter 11 plan at a court hearing on Sept. 26, a filing from the same day shows.
The amount of repayment received by BlockFi's unsecured creditors will largely depend on whether BlockFi is successful in its legal battle against FTX and other bankrupt cryptocurrency companies.
BlockFi filed its first liquidation plan with bankruptcy court on November 28 but then he was asked to submit a first, second and third modified plan in May. June 12. July 28 and 31 respectively, court documents show.
BlockFi's liquidation plan was approved after the company resolved a long-standing dispute with the creditors committee over the company's senior management.
A court of September 25 presentation shows that BlockFi's committee of creditors acknowledged that the deal likely reduced additional fees and administrative expenses that could have reduced recoveries.
The lending platform now bankrupt blamed the collapse of FTX for its own failure even though the creditors committee cited concerns with BlockFi's relationship with FTX and its former CEO Sam Bankman-Fried.
Related: BlockFi Asks Court for Permission to Convert Trading-Only Assets to Stablecoins
The estimates show BlockFi owes up to $10 billion to more than 100,000 creditors, including $1 billion to its three largest creditors and $220 million to bankrupt crypto hedge fund Three Arrows Capital.
BlockFi is represented by law firms Kirkland & Ellis LLP and Haynes and Boone LLP.
Magazine: What do crypto exchanges actually do with your money?
Post navigation
