Crypto lender BlockFi gets court nod for plan to repay customers

The customers of insolvent cryptocurrency lending platform BlockFi are one step closer to being paid out after a United States Bankruptcy Court in New Jersey approved its liquidation plan.Bankruptcy Judge Michael A. Kaplan authorized BlockFis 3rd modified Chapter 11 strategy in a Sept. 26 court hearing, a filing on the same day shows.Sept. BlockFis liquidation plan was approved after the company settled a long-fought disagreement with the creditors committee over the businesss senior management.A Sept. 25 court filing shows that the BlockFi financial institutions committee acknowledged that the settlement likely lowered additional administrative charges and expenses that could have cut into the recoveries. Related: BlockFi asks court for authorization to transform trade-only assets into stablecoinsEstimates reveal BlockFi owes up to $10 billion to over 100,000 financial institutions, including $1 billion to its 3 largest financial institutions and $220 million to bankrupt crypto hedge fund Three Arrows Capital.