Bankrupt Cryptocurrency Lender BlockFi to Begin Creditor Repayments in July

Now-defunct cryptocurrency lending platform BlockFi is set to repay its creditors in July, 19 months after filing for bankruptcy.

Crypto Lending Platform Collapsed BlockFi will begin repaying its creditors in July, nearly two years after the company filed for bankruptcy following the dramatic collapse of the FTX cryptocurrency exchange.

In a post by X on Thursday, the New Jersey-based company said that distributions will be processed “in batches over the next few months” through Coinbase, adding that eligible customers will receive a notification via the BlockFi account email on file. However, it clarified that non-U.S. customers are not yet able to receive funds due to regulatory requirements, with no specific timeline for these refunds.

For those unable to open a Coinbase account, BlockFi has previously assured that all distributions “will be made in cash.”

In March, BlockFi announced that it was unlikely to fully repay customers with interest-bearing accounts. The company had previously estimated that these customers could recover between 39.4% and 100% of their account value. The cryptocurrency lending giant archived for Chapter 11 protection in November, amid market volatility and substantial exposure to the defunct cryptocurrency exchange FTX. Less than a year later, BlockFi has emerged from bankruptcy and is now working to repay its creditors.

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