Source: financemagnates, Friday ،26/07/2024: GMT 10:07
Bankrupt BlockFi announced yesterday (Thursday) its plans to return “100%”” of defaulting customer claims. However, the value of claims will be calculated based on the bankruptcy date and not the current market value of cryptocurrencies..
Refund from FTX
A full reclaim became possible as the bankruptcy manager of the bankrupt BlockFi company “”sold … Pending claims against FTX for an amount exceeding the face value of the claims””.
The announcement noted, “While these redemptions cannot undo the impact of the platform downtime, distributing 100% of the dollar value of permitted claims to eligible customers efficiently in the near future is a very positive result.”””.
BlockFi declared bankruptcy at the end of November 2022 following the collapse of FTX.” Days before declaring bankruptcy, the platform suspended withdrawals for its users, citing a lack of clarity regarding the situation with FTX.
Meanwhile, FTX is also preparing to return more than 100 percent of claims to its defaulting creditors, as it was able to recover large amounts of cash after selling its assets. Similar to BlockFi, other FTX creditors have sold their claims as well. Earlier, European digital asset investment firm CoinShares received Yield of £31.32m on a £26.6m claim.
Final distribution in 90 days
Meanwhile, BlockFi also highlighted that it is “working to make final distributions as quickly as possible.””.
Although U.S. creditors of the collapsed crypto lending platform are likely to receive final distributions within the next 90 days, international customers may have to wait longer. Customers in the US were also instructed to set up their Coinbase accounts before August 23 to receive claims..
“At this time, international customers can expect to receive their money in a longer timeframe due to certain regulatory requirements in Bermuda,” the BlockFi announcement added. “These regulatory requirements may require further KYC verification and diligence for distributions that have not been made.”.
