<div class="cryptonews"> 
 <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 <a rel="noopener noreferrer nofollow" title="creditor" href="https://thebittimes.com/tag/creditor.html">creditor</a>s under Chapter 11 has begun. During this time, the <a rel="noopener noreferrer nofollow" title="creditor" href="https://thebittimes.com/tag/creditor.html">creditor</a>s can vote on Blockfi’s <a rel="noopener noreferrer nofollow" title="bankruptcy" href="https://thebittimes.com/tag/bankruptcy.html">bankruptcy</a> plan.</p> 
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   <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 <a rel="noopener noreferrer nofollow" title="creditor" href="https://thebittimes.com/tag/creditor.html">creditor</a>s will have the opportunity to vote on our Chapter 11 Plan.</p>— BlockFi (@BlockFi) August 15, 2023 
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 <p>The company stated that all <a rel="noopener noreferrer nofollow" title="creditor" href="https://thebittimes.com/tag/creditor.html">creditor</a>s 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> 
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 </div> 
 <h2 class="wp-block-heading" id="blockfi-s-bankruptcy">BlockFi’s Bankruptcy</h2> 
 <p>Following the FTX chaos last year, BlockFi 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 <a rel="noopener noreferrer nofollow" title="creditor" href="https://thebittimes.com/tag/creditor.html">creditor</a>s’ 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 <a rel="noopener noreferrer nofollow" title="bankruptcy" href="https://thebittimes.com/tag/bankruptcy.html">bankruptcy</a> 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> 
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BlockFi’s bankruptcy moves forward with creditor vote

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