<p class="is-style-lead">BlockFi announces the start of its Chapter 11 solicitation period, allowing creditors to vote on the bankruptcy plan.</p> 
<p>Blockfi has announced via Twitter that the solicitation period for creditors under Chapter 11 has begun. During this time, the creditors can vote on Blockfi’s bankruptcy plan.</p> 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
 <div class="wp-block-embed__wrapper"> 
  <blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
   <p lang="en" dir="ltr">The Solicitation Period in BlockFi’s Chapter 11 Cases is now starting. During this period, all eligible creditors will have the opportunity to vote on our Chapter 11 Plan.</p>— BlockFi (@BlockFi) <a href="https://twitter.com/BlockFi/status/1691497583083188224?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">August 15, 2023</a> 
  </blockquote> 
  <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
 </div> 
</figure> 
<p>The company stated that all creditors would receive the information under the solicitation package via email.&nbsp;They can submit the ballot until Sep. 11, 2023.</p> 
<p>The solicitation package includes all the data regarding the eligibility of each creditor and the steps to be followed for completing the ballot.</p> 
<p>After the solicitation period is over and the plan is approved, Chapter 11 will finish, and customers can get their refunds.</p> 
<p> You might also like: <a href="https://crypto.news/blockfi-victims-set-to-get-reimbursed/" rel="noopener noreferrer nofollow"> BlockFi victims set to get reimbursed </a> </p> 
<h2 class="wp-block-heading" id="blockfi-s-bankruptcy">BlockFi’s Bankruptcy</h2> 
<p>Following the FTX chaos last year, <a href="https://crypto.news/blockfi-customers-want-to-take-over-375m-worth-of-crypto-assets/" data-type="link" data-id="https://crypto.news/blockfi-customers-want-to-take-over-375m-worth-of-crypto-assets/" rel="noopener noreferrer nofollow">BlockFi</a> filed for bankruptcy on Nov. 28, 2022. The New Jersey-based company faced a liquidity crisis in June 2022 after the crypto hedge fund Three Arrows Capital collapsed.</p> 
<p>The company explained that the decision to file for bankruptcy was made after they faced a liquidity crisis due to their exposure to FTX.</p> 
<p>Later this year, the creditors’ committee stated that BlockFi had a false case narrative. The committee said that BlockFi was not a victim of FTX’s collapse and added that the main reason for the company’s bankruptcy was their poor management.</p> 
<p>The creditors committee also explained that after the FTX collapse, BlockFi switched $240 million from crypto to fiat. As a result of the conversion, the company had financial losses and potential tax issues for its customers.</p> 
<p> You might also like: <a href="https://crypto.news/blockfi-ceo-was-aware-of-ftxs-conditions-when-lending-to-it/" rel="noopener noreferrer nofollow"> BlockFi CEO was aware of FTX’s conditions when lending to it </a> </p>

BlockFi’s bankruptcy moves forward with creditor vote

Table of Contents

crypto.news

Other articles published on Aug 16, 2023

Linera Blockchain Raises Additional $6M for Innovative Microchain Design Evolving from Meta’s Nov...

Banks are removing cash from society - Bitcoin anyone?

Terra Classic (LUNC) and Terra (LUNA) Prices Drop 10%: Reasons

$UNIBOT Price Went Up 15.56% Over the Last 24 Hours

Crypto Miners Unite: The Digital Energy Council Emerges in Washington

Crypto millionaire found murdered in Bulgaria, suspect arrested

Join our free newsletter for daily crypto updates!