Bankrupt crypto lender BlockFi to start creditor repayments in July

Bankrupt crypto lending platform BlockFi will begin paying back its creditors in July, 19 months after it filed for bankruptcy.

Collapsed crypto lending platform BlockFi will begin repaying creditors in July, nearly two years after it filed for bankruptcy following the dramatic collapse of crypto exchange FTX.

The New Jersey-based firm said in a Thursday X post that distributions will be processed “in batches over the coming months” through Coinbase and that eligible customers will receive a notification in the BlockFi account email on file. However, it clarified that customers outside the U.S. continue to be unable to receive funds due to regulatory requirements and there is no specific timeline for these refunds.

Distributions will be processed in batches over the coming months and eligible customers will receive a notification in the BlockFi account email on file. Please note that Customers outside of the US are currently unable to receive funds due to current regulatory requirements…

— BlockFi (@BlockFi) July 17, 2024

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

In March, BlockFi announced that it was unlikely to fully pay customers with interest-bearing accounts. The company had previously estimated that those customers could get back between 39.4% and 100% of their account value. The crypto lending giant filed for Chapter 11 protection in November amid market volatility and significant exposure to bankrupt crypto exchange FTX. Less than a year later, BlockFi emerged from bankruptcy and is now working to repay its creditors.