BlockFi, a cryptocurrency lending company that faced financial troubles, has received approval from its creditors for a plan to reorganize and resolve its bankruptcy. As per the case info the plan has its final hearing at 11 a.m. on October 10th, 2023.
This is a significant step forward in a lengthy process to close down the company’s operations and repay its clients.
BlockFi was one of many digital asset firms that had to halt customer transactions and eventually went bankrupt after the crypto exchange FTX faced major issues last autumn.
The approved restructuring plan, which was supported by over 90% of creditors, will enable BlockFi to recover the assets it had lost to the crypto exchange FTX and the unsuccessful hedge fund Three Arrows Capital.
This recovery will allow BlockFi to provide more money to the creditors who are owed funds by the company.
According to a notice sent to people who are owed money, if this plan succeeds, it could mean that those people get more of their money back.
Before this plan becomes official, the New Jearsy bankruptcy court needs to give it the go-ahead, as BlockFi explained in their email. Once it’s given the green light by Judge Keplan, the company can start giving the owed money to the people it owes it to.
Also Read: BlockFi Liquidation Plan to be Approved By Bankruptcy Court
