Crypto lender BlockFi gets court nod to repay customers

The customers of bankrupt cryptocurrency financing platform BlockFi are one action better to being paid out after a United States Bankruptcy Court in New Jersey approved its liquidation plan.Bankruptcy Judge Michael A. Kaplan authorized BlockFis third changed Chapter 11 plan in a Sept. 26 court hearing, a filing on the same day shows.Sept. 26 court filing in the insolvency case of BlockFi. Source: KrollThe amount of repayment received by BlockFis unsecured financial institutions will mainly depend upon whether BlockFi prospers in its legal fight against FTX and other insolvent cryptocurrency firms.BlockFis liquidation strategy was authorized after the company settled a long-fought disagreement with the lenders committee over the businesss senior management.The now insolvent lending platform blamed FTXs collapse for its own failure regardless of the creditors committee mentioning issues with BlockFis relationship with FTX and its previous CEO Sam Bankman-Fried. Related: BlockFi asks court for approval to convert trade-only possessions into stablecoinsEstimates show BlockFi owes up to $10 billion to over 100,000 financial institutions, including $1 billion to its 3 biggest creditors and $220 million to bankrupt crypto hedge fund Three Arrows Capital. This is a developing story, and further information will be added as it appears.
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