Cryptocurrency markets suffered devastating blows in 2022. We witnessed the bankruptcy of many cryptocurrency companies a year ago. Now, as the anniversary of the FTX bankruptcy approaches, BlockFi announced that it has survived bankruptcy. Terra was the first to be shaken during the collapse but managed to overcome the first downfall. However, it fell with FTX in the second collapse. Now, it is rising again.
BlockFi Escapes Bankruptcy
BlockFi has just announced on its official website that it has emerged from bankruptcy as of October 24, 2023. We provided extensive information about Chapter 11 bankruptcy filing last year. When companies face financial difficulties, they file for Chapter 11 bankruptcy, and if they are not fraudulent, they have the possibility to reestablish the company.
So, when will users be able to withdraw their funds from the platform? Detailed information is available in a blog post. Here are some details from the post:
“Withdrawals are currently available for almost all Wallet customers. If you haven’t done so yet, please log in to the BlockFi website to submit a withdrawal request.
Now that BlockFi has emerged from bankruptcy, the company can begin liquidation as stated in the Plan. The Plan Administrator and remaining employees are working as quickly as possible to prepare BlockFi for the initial distribution of assets from the liquidation estate.
For customers holding funds in BlockFi Interest Account (BIA) and Individual Loans: In the coming months, you will receive an email requesting you to withdraw your funds based on the approved recovery amounts by the Plan.”
