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Blockfi Chapter 11 Update

We are pleased to share that yesterday, the U.S. Bankruptcy Court for the District of New Jersey conditionally approved BlockFi’s Disclosure Statement. This is an important step forward in our Chapter 11 cases and toward our goal of maximizing recoveries for creditors.

BlockFi’s Chapter 11 Plan (the “Plan”) maximizes recovery for clients and provides for the quickest possible distributions to clients. Both BlockFi and the Official Committee of Unsecured Creditors (the “Committee”) recommend that all parties entitled to vote should vote to accept the Plan by the September 11, 2023, at 4:00 p.m. prevailing Eastern Time, voting deadline. The Plan will bring these Chapter 11 cases to a fair and value‑maximizing conclusion that will return client funds as quickly as possible.

Our Plan
We have been working diligently to return digital assets held in BlockFi Wallet Accounts (“Wallet”) to clients. Now, through the Plan, we intend to safely and securely return non-Wallet assets to creditors. The Disclosure Statement describes the following key features of the plan, among others:

  • Positions BlockFi to Maximize Recoveries: The Plan positions BlockFi to focus its efforts on pursuing claims and causes of action in the litigation against Alameda, FTX, 3AC, Emergent, Marex, and Core Scientific to maximize recoveries for clients, and defending against claims which threaten to massively dilute clients. Success or failure in these matters will make a positive or negative difference to client recoveries of over $1 billion, which is an order of magnitude larger than any other issue impacting recoveries.
  • Client Releases: The Plan offers a Third-Party Release to clients. If you do not check the box to opt out of the Third-Party Release, you will release any claims you may have against third parties related to BlockFi and you will receive a release from BlockFi of substantially all claims the Company may have against you. This includes a release of any clawback claims BlockFi could bring against you for transfers from BlockFi Interest Accounts (“BIA”) or BlockFi Private Client Accounts (“BPC”) to Wallet and/or off the BlockFi Platform prior to the Platform Pause other than Retained Preference Claims. Retained Preference Claims include withdrawals from BIA or BPC on and after November 2, 2022, over $250,000.
  • Convenience Claim Class: All creditors with claims between $10 – $3,000 will be included in a “Convenience Class.” Creditors in the Convenience Class will receive a one-time distribution of 50% of their claim in cash. Certain creditors whose claims exceed $3,000 will also have the option to elect to have their claim amount reduced to $3,000 and treated as a Convenience Claim.

Information on Voting
Now that the Disclosure Statement has been approved, BlockFi will begin soliciting votes from creditors on the Plan. Clients and other creditors will receive a Solicitation Package from Kroll via email that includes the Disclosure Statement and other materials regarding the voting and confirmation process. Clients who are entitled to vote on the Plan will receive materials with specific instructions on how to vote for the Plan. Certain classes of creditors, however, are not entitled to vote on the Plan. Those creditors will receive information about their non-voting status instead of voting instructions. Some creditors are not entitled to vote but are entitled to opt out of the Third-Party Release, so it is very important that you review your Solicitation Package carefully.

In order for a vote to be counted, it must be actually received by Kroll on or before September 11, 2023, at 4:00 p.m. prevailing Eastern Time. BlockFi encourages all clients⁠—including clients who are not eligible to vote⁠—to read the Disclosure Statement and other materials in their Solicitation Packages in full to learn more about the Plan and seek legal counsel where necessary.

For additional information about BlockFi’s Plan, see our FAQs.

With questions or for additional information about the Plan or how to vote, creditors can visit the Kroll website at Creditors can also contact Kroll by email at

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