Onchain Foundation recovers $2.9 million from BlockFi
Lisk co-founder Max Kordek wrote on X platform that the Onchain Foundation (formerly Lisk Foundation) has recovered 44% ($2.9 million) of funds from BlockFi. In 2021 and 2022, the Lisk Foundation placed a large amount of funds on BlockFi after conducting sufficient due diligence. When things started to get "strange," the foundation tried to retrieve all available funds (over $20 million), but $6.5 million was locked in a 12-month contract and BlockFi refused to cooperate in allowing early withdrawal. Just about two months before the Lisk Foundation could withdraw these funds, BlockFi went bankrupt. Kordek stated that the foundation has learned its lesson and is now diversifying its fund storage methods, currently staking Ethereum for passive income and building income streams through its products with the goal of achieving sustainable development by 2026.
BlockFi: The next round of fund returns will start today, and more than $500 million in assets has been returned to nearly 130,000 customers
Cryptocurrency lending company BlockFi tweeted that it has completed the cryptocurrency refunds for its wallet product on January 22nd, fully returning all requested assets to nearly 130,000 customers, with a total value exceeding $500 million. Starting in February, BlockFi's remaining products (including the BlockFi Interest Account BIA) will allow customers, loan customers, and private clients to initiate withdrawal requests. The company stated that withdrawal times will be staggered based on account type and value, to ensure that all relevant parties can withdraw smoothly within the expected few weeks. In addition, the company expects to initially return 20% to 40% of the approved claim amounts to customers, and will continue to recover funds from FTX assets and further distribute them to customers upon receipt.
BlockFi: Wallet withdrawal window closes on December 31, 2023 at 11:59
BlockFi has issued a reminder on social media for those eligible to withdraw cryptocurrency assets from their BlockFi wallet account. BlockFi states that if you have not yet submitted a withdrawal application, please submit it before the wallet withdrawal window closes at 11:59 PM UTC on December 31, 2023 (world time) to receive your cryptocurrency funds as soon as possible. Please note the following key dates for wallet withdrawals:
BlockFi to international clients: Final deadline to submit proof of debt is December 9
BlockFi stated on X platform that for international clients: BlockFi International Ltd's creditors are hereby notified that the final deadline for submitting debt proof has been set by the Bermuda court as ADT time 4:00 PM on December 8, 2023 (3:00 AM Beijing time on December 9). If either (1) a claim has already been filed or (2) arrangements for the claim have been made in the United States, no further action is required.
BlockFi reminds users to submit withdrawal requests as soon as possible before the wallet withdrawal window closes
BlockFi stated on X platform that the wallet withdrawal window will close on December 31, 2023 at 11:59PM UTC (January 1, 2024 at 7:59AM Beijing time). Users need to submit a withdrawal request before the window closes in order to receive their cryptocurrency funds as soon as possible. Requests for identity verification information must be received before January 12, 2024 at 11:59PM UTC (January 13, 2024 at 7:59AM Beijing time).
U.S. judge orders end to automatic stay between FTX and BlockFi, allowing talks to settle claims
A US judge has ordered the automatic stay between bankrupt crypto companies FTX and BlockFi to be terminated, meaning the two companies can begin negotiating a settlement for the claim. BlockFi filed for bankruptcy at the end of November last year, in part due to the chain reaction caused by FTX's sudden collapse earlier that month. This triggered an automatic stay, halting the litigation process between the two companies. BlockFi has frozen about $355 million on the cryptocurrency exchange platform, and FTX's sister company, Alameda Research, owes BlockFi $671 million.
Luxor: The new Bitcoin computing power product is not a scam and will not repeat the failure experience of BlockFi or Celsius
Bitcoin mining service company Luxor said that its upcoming Bitcoin hash rate support product should not be compared to the failed products of BlockFi or Celsius because Luxor's product returns come from proof of work (PoW) and not from a "Ponzi scheme". Luxor's product allows investors to provide Bitcoin as collateral to Luxor to obtain a portion of the loan repayment, and then Luxor lends it to other miners for their operations; returns are generated when hash rate is "locked" by purchasing it at a discounted price from Bitcoin miners and selling it at a higher price. The Bitcoin rewards from mining come from that hash rate. Luxor expects investor returns to be between 10% and 13%. This process will be managed through Luxor's upcoming hash rate market. (Cointelegraph)
BlockFi announces completion of bankruptcy reorganization and launches compensation plan
Cryptocurrency lending company BlockFi announced that it has successfully completed its bankruptcy proceedings and is now implementing its bankruptcy plan. BlockFi will begin implementing measures outlined in the plan, including repayment of creditors according to plan terms, efforts to recover assets from FTX, 3AC, and other companies, distribution of digital assets to customers, and ensuring fair and equitable distribution of customer rights.
BlockFi announces its bankruptcy plan is in effect
BlockFi has announced that its bankruptcy plan has become effective and it can now officially begin to carry out the actions detailed in the plan, including repaying creditors according to the plan's terms. The plan will allow the company to carry out the following operations:
Recovery: Attempt to recover assets that the company believes are owed by FTX, 3AC, and other companies, as well as their bankruptcy assets. The success of this lawsuit may increase compensation for customers.
Withdrawal: Continue to distribute digital assets to customers, including BIA holders.
Claims: Continue to verify the claims process to ensure that customer claims accurately reflect the asset categories and amounts, and ensure that customers receive a fair and reasonable distribution of remaining and recovered assets.
BlockFi CEO: Alameda and FTX are to blame for BlockFi’s collapse
BlockFi CEO Zac Prince testified in the SBF trial that Alameda and FTX were the main culprits behind BlockFi's collapse, and stated that he would never have issued loans if he had known that Alameda's balance sheet contained false information.
