Tag: BlockFi

Luxor refutes claims its Bitcoin hashrate-backed product is BlockFi, Celsius 2.0

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An upcoming Bitcoin (BTC) hashrate-backed product that could offer 10% to 13% returns shouldn’t be compared to failed products by BlockFi or Celsius as its returns come from proof-of-work, not “ponzi schemes,” claims the product’s creator Bitcoin mining firm Luxor Technology. The legitimacy of Luxor’s hashrate-backed product was highlighted in an Oct. 17 What Bitcoin Did podcast. Host Peter McCormack expressed concern at Luxor’s upcoming offering and discussed what a worst-case-scenario for Luxor’s product would look like. Luxor’s Head of Derivatives Matt Williams told Cointelegraph that its hashrate-backed product isn’t…

BlockFi emerges from bankruptcy, Worldcoin halts USDC payments and more

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Crypto lender BlockFi announced its emergence from insolvency this week, just a few days after FTX announced that it successfully reclaimed approximately $7 billion in assets. FTX debtors, comprising FTX and affiliates, estimate that $8.7 billion has been misappropriated from customers. BlockFi has lent FTX more than $650 million, making it one of the exchange’s largest creditors, which means its customers’ repayment success is tied to FTX’s ability to recover its assets. FTX’s new management is also carefully considering its future options, including selling the entire exchange — which includes…

Crypto Lender BlockFi Begins Shutdown, Asks Clients to Submit Withdrawal Request

BlockFi revealed that it has emerged from bankruptcy court, having received approval for its reorganization plan from all relevant stakeholders. Nearly 11 months after it first declared bankruptcy, the crypto lender BlockFi has now officially begun the process of winding down its operations. In line with this, the company has asked its wallet users to tender their withdrawal requests on its website to claim their funds. However, there is a December 31 deadline for the requests. In the October 24 announcement, BlockFi revealed that it has emerged from bankruptcy court,…

BlockFi to start settling debts with creditors after successful exit from bankruptcy

BlockFi has announced its emergence from bankruptcy and is initiating plans to repay creditors, marking a significant turnaround after last year’s challenging halt of withdrawals following the FTX exchange collapse. The Oct. 24 announcement by BlockFi, a crypto lending firm, about its emergence from bankruptcy and the commencement of creditor repayments signifies a pivotal moment in the company’s history. BlockFi is pleased to announce that its bankruptcy plan (the “Plan”) is effective and the company has emerged from bankruptcy as of October 24, 2023 (the “Effective Date”). — BlockFi (@BlockFi)…

BlockFi emerges from bankruptcy and opens wallet withdrawals

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Crypto lending platform BlockFi has emerged from bankruptcy and is ready to pay back some of its creditors, according to an October 24 blog post. Withdrawals “are currently available to nearly all Wallet customers,” the post stated, adding that Blockfi Interest Account (BIA) and Loan customers will be able to withdraw some assets in early 2024. BlockFi is pleased to announce that its bankruptcy plan (the “Plan”) is effective and the company has emerged from bankruptcy as of October 24, 2023 (the “Effective Date”). — BlockFi (@BlockFi) October 24, 2023…

Crypto Lender BlockFi Says It’s Taken Major Step Toward Emerging From Bankruptcy

The beleaguered crypto lender was among a rash of digital asset companies that froze their customers’ accounts and eventually collapsed after FTX blew up last fall. The restructuring plan, which more than 90% of creditors approved, will enable BlockFi to recover the assets it lost to crypto exchange FTX and failed hedge fund Three Arrows Capital, allowing the lender to put more money in creditors’ pockets, the company said. Source

Crypto lender BlockFi gets court nod to repay customers

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The customers of bankrupt cryptocurrency lending platform BlockFi are one step closer to being paid out after a United States Bankruptcy Court in New Jersey approved its liquidation plan. Bankruptcy Judge Michael A. Kaplan approved BlockFi’s third amended Chapter 11 plan in a Sept. 26 court hearing, a filing on the same day shows. Sept. 26 court filing in the bankruptcy case of BlockFi. Source: Kroll The amount of repayment received by BlockFi’s unsecured creditors will largely depend on whether BlockFi succeeds in its legal battle against FTX and other…

Bankrupt lender, BlockFi, files to convert ‘trade-only’ tokens into stablecoins

BlockFi, the now-defunct crypto lending company, has filed a court application to move “trade-only” assets from users’ accounts to stablecoins. This move follows the company’s ongoing efforts initiated in August to return users’ funds after previously closing withdrawals. BlockFi filed an application on Aug. 29 to the United States Bankruptcy Court for the District of New Jersey to authorize the conversion of trade-only assets into stablecoins, including Algorand’s native token (ALGO), Bitcoin Cash (BCH), and Dogecoin (DOGE).  Since these assets can’t be withdrawn easily, BlockFi is proposing a one-time exchange for Gemini Dollar…

BlockFi asks court for permission to convert trade-only assets into stablecoins

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Defunct crypto lending firm BlockFi applied to the court a request to transfer the trade-only assets from its users’ accounts into stablecoins, so they could be withdrawn by the individuals. The request marks another step toward the return of users’ funds, a process that the company began in August.  On Aug 29, BlockFi filed an application to the United States Bankruptcy Court for the District of New Jersey, to authorize the conversion of so-called “trade-only” assets into stablecoins. The assets in question — Algorand, Bitcoin Cash and Dogecoin — cannot…