BlockFi exits bankruptcy and opens wallet withdrawals.

Crypto lending platform BlockFi has emerged from bankruptcy and is ready to repay some lenders, it said in a blog post on October 24. Withdrawals are “currently available to all Wallet customers,” the post said, adding that Blockchain Interest Account (BIA) and Loan customers will be able to withdraw some assets as early as 2024.

BlockFi is pleased to announce that its bankruptcy plan (the “Plan”) is effective and the Company will be discharged from bankruptcy effective October 24, 2023 (the “Effective Date”).

— BlockFi (@BlockFi) October 24, 2023

According to the post, BlockFi's exit from bankruptcy means it can now try to recover assets from other firms it believes are owed money. This includes bankrupt crypto platforms such as Three Arrows Capital (also known as “3AC”) and FTX. The company will continue to distribute assets to creditors and process claims.

The team instructed Wallet customers with assets on BlockFi to log into the app and submit a withdrawal request, allowing the team to process the withdrawal. As for BIA and credit customers, BlockFi says it is preparing for the first distributions under its bankruptcy plan. The first distributions are expected to take place in early 2024. Additional distributions will be made after this time, but the amount of money distributed will depend on BlockFi, FTX bankruptcy litigation and other factors.

Related: Crypto lender BlockFi gets court nod for plans to repay customers

BlockFi was a crypto lending platform that first ran into liquidity problems when Terra stablecoin collapsed in mid-2022. At the time, FTX bailed out the platform with a $400 million credit line. Then FTX happened in November, taking down blockchain with it. On August 17, a US court ordered that BlockFi be allowed to make payments to wallet customers in the US after its plan to liquidate the company and pay off creditors was approved by the bankruptcy court. However, the court did not allow US customers to withdraw at that time. The current BlockFi Wallet Withdrawal FAQ contains an update stating that international users are now allowed to withdraw.