BlockFi Appeals to Creditors to Come Forward and Claim Bankruptcy Distributions

Less than fractional of non-U.S. customers of bankrupt cryptocurrency lending steadfast BlockFi person travel guardant to assertion their assets backmost with a May 15 deadline looming, the lender said successful a blogpost connected Wednesday.

BlockFi filed for bankruptcy successful November of 2022 arsenic contagion from the illness of FTX dispersed done the crypto industry. The steadfast aboriginal emerged from bankruptcy and announced a program successful July of 2024 to administer 100% of the dollar worth of customers’ claims astatine the clip of the bankruptcy filing.

So far, 97% of U.S. customers person claimed their distributions, portion lone 43% of non-U.S. customers person received their distributions. It should beryllium noted that arranging distributions for U.S. customers was much straightforward and began earlier than those for non-U.S., which progressive courts successful some the U.S. and Bermuda.

A imaginable crushed for the shortfall successful claimants could beryllium due to the fact that radical deliberation messages from the BlockFi Estate asking customers to prime a outgo method are spam oregon phishing attacks. The steadfast said it has been moving with information experts to reassure customers of legitimacy.

“BlockFi is doing each it tin to marque last distributions to each erstwhile customers,” the blogpost said. “Some customers whitethorn request to implicit a ‘Know Your Customer’ individuality verification process to person their distributions. We powerfully promote each customers who person not received their distributions oregon finished this process to implicit this process by May 15, 2025.”

U.S. and non-U.S. customers had to bash KYC successful bid to usage BlockFi successful the archetypal place, truthful this is not apt to beryllium a stumbling artifact for those inactive to assertion distributions.

The verification process, which requires 2 forms of ID, takes 10 minutes to perform, BlockFi said. Once completed, reviewed, and approved, clients tin expect to person processed payments wrong 45 days, it said.

The bankruptcy codification states that assets that are not claimed by customers by the May 15 deadline volition beryllium shared among different unsecured creditors little down successful the pecking order.