Brief overview
The United States Bankruptcy Court in New Jersey has given BlockFi, a bankrupt cryptocurrency lending platform, the green light to proceed with its liquidation plan. This means that the customers will soon be able to receive their repayments.
Court approval secures repayment for customers
In a court hearing on September 26, Bankruptcy Judge Michael A. Kaplan approved BlockFi's third amended Chapter 11 plan. This is a significant step forward in the process of paying out the platform's customers.
Uncertainty surrounding repayment amounts
The exact amount that BlockFi's unsecured creditors will receive is still uncertain. It largely depends on the outcome of the legal battle between BlockFi and FTX, as well as other bankrupt cryptocurrency firms. The resolution of this dispute will determine the final repayment figures.
Settlement of disputes
Before the liquidation plan was approved, BlockFi had to resolve a longstanding dispute with the creditors committee over the company's senior management. This settlement paved the way for the court's approval of the plan.
Blaming FTX for collapse
Despite the creditors committee expressing concerns about BlockFi's relationship with FTX and its former CEO Sam Bankman-Fried, the bankrupt lending platform placed the blame for its failure on FTX's collapse.
Billions owed to creditors
Estimates suggest that BlockFi owes a staggering $10 billion to over 100,000 creditors. This includes $1 billion to its three largest creditors and $220 million to bankrupt crypto hedge fund Three Arrows Capital.
Stay tuned for updates
This story is still developing, and we will provide further information as it becomes available. Customers of BlockFi can expect updates on the repayment process in the near future.
Did you miss our previous article...
https://trendinginthenews.com/crypto-currency/cofounder-of-100-million-cryptocurrency-pyramid-scheme-sentenced-to-12-years-in-prison
