(Reuters) -BlockFi emerged from bankruptcy on Tuesday, nearly 11 months after it was swept away by the turbulence in the cryptocurrency industry following the collapse of FTX.
In its bankruptcy filing in November last year, BlockFi had cited its loans to FTX’s sister firm Alameda as one of the reasons for the crisis it was facing.
On Tuesday, the company said it would officially begin enacting the actions detailed in its bankruptcy plan, like recovering assets it believes are owed to it by FTX, Three Arrows Capital and others.
Any attempts to recover assets from those companies, however, will likely be contentious as both are themselves waddling through their respective bankruptcy processes.
Separately, FTX co-founder Sam Bankman-Fried is undergoing a trial for fraud.
BlockFi said withdrawals are currently available to nearly all of its Wallet customers.
Those with BlockFi Interest Accounts and Retail Loans will be repaid over the coming months, but the amounts they receive could vary based on the outcome of the FTX bankruptcy, BlockFi said.
Crypto lenders, the de facto banks of the crypto world, boomed during the pandemic, attracting retail customers with double-digit rates in return for their crypto deposits.
Such companies are not required to hold capital or liquidity buffers like traditional lenders and some found themselves exposed when a shortage of collateral forced them – and their customers – to shoulder large losses.
(Reporting by Niket Nishant in Bengaluru; Editing by Shailesh Kuber and Anil D’Silva)
Disclaimer: This report is auto generated from the Reuters news service. ThePrint holds no responsibilty for its content.