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FTX creditors progress reference: Nearly a year later, BlockFi opens withdrawal requests

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FTX creditors progress reference: Nearly a year later, BlockFi opens withdrawal requests

BlockFi declared bankruptcy on 28th November 2022 after nearly a year, currently in a phase where withdrawals can be "requested." Although the process is likely to be even more lengthy for the larger-scale FTX, it can still serve as a reference.

BlockFi Opens Withdrawal Applications After Nearly a Year

According to the announcement from BlockFi, the bankruptcy reorganization plan officially took effect on October 24th, with a scheduled completion of tasks.

The plan includes:

1. Withdrawals: Regular accounts must submit withdrawal requests by 07:59 am on January 1, 2024 (Taiwan time)

Withdrawals for BlockFi Interest Accounts (BIA), retail lenders, and other interest-bearing accounts will be opened after the deadline for regular account withdrawals. The specific date is yet to be determined.

As per the official website, it may take up to 90 days or longer to process withdrawal requests. Users must meet the following conditions to be eligible for withdrawals:

  • Users who have not withdrawn or transferred more than $7,575 from interest-bearing and private accounts within 90 days before November 28, 2022

  • Wallets that did not hold any assets labeled "trade-only" before November 10, 2022

  • BlockFi expects more users to become eligible for withdrawals in the future

Note: BlockFi's withdrawal fee list includes all withdrawable currencies. All other tokens are trade-only and not eligible for withdrawals.

2. Compensation: Continuing to pursue lawsuits against FTX, 3AC, and other companies to increase creditor compensation

Whether this will enhance BlockFi's repayment capability remains uncertain.

FTX creditors have cited U.S. laws, claiming that institutions including Binance, Genesis, Celsius, BlockFi, Voyager, among others, hold illicit funds from FTX.

Multiple exchanges and institutions holding FTX "illicit funds" could face up to ten years in prison

3. Claims: Continuously verifying the claims process to ensure the accuracy of users' asset categories and allocated amounts

The announcement from BlockFi does not mention the compensation ratio.

The initial bankruptcy statement indicated that BlockFi has over 100,000 creditors.

BlockFi has over $300 million stuck in FTX! Lawyer: SEC likely to be compensated first, retail investors last

Beware of BlockFi Phishing Emails

Some users have reported receiving fake BlockFi emails.

Be cautious of BlockFi phishing emails, and verify: