BlockFi’s Chapter 11 plan progresses with conditional court approval
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BlockFi’s reorganization is gradually progressing, with the company revealing that the United States Bankruptcy Court for the District of New Jersey has conditionally approved its disclosure statement.
BlockFi and the Official Committee of Unsecured Creditors jointly
Furthermore, under the plan, BlockFi will not reclaim amounts under $250,000 that clients properly transferred from BIAs or BPCs to BlockFi Wallet, and withdrew from Wallet before the platform paused on Nov. 10, 2022. Clients with claims under $3,000, or those who choose to reduce their claim to $3,000, will be part of the convenience claim class and receive a one-time cash distribution from the BlockFi estate equal to 50% of their claim.
In June, the United States Securities and Exchange Commission consented to delay the collection of a $30 million fine from the bankrupt cryptocurrency lender until creditors are fully repaid. This sum constitutes the remaining balance of a $50 million settlement reached with the regulator in February 2022.
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