Platform dossier
BlockFi
Digital asset lender and interest account provider that paused activity after FTX collapsed, filed for Chapter 11 bankruptcy in November 2022, and later emerged from bankruptcy to wind down operations and pursue recoveries.
What happened?
BlockFi was exposed to FTX and Alameda-related credit risk. After the FTX collapse, BlockFi restricted platform activity, filed for bankruptcy, and later emerged from Chapter 11 to liquidate assets and distribute recoveries.
Customer funds
BlockFi emerged from bankruptcy to wind down and distribute recoveries. Final customer outcome depended on product type and recoveries from related counterparties.
Terms risk
BlockFi requires product-by-product treatment in later research. This seed records the risk class but does not yet parse the full plan documents.
Uncertainty
Customer recoveries depended on product type and bankruptcy recoveries from FTX, Alameda, and related claims. Direct plan documents should be added in a later pass.
Timeline
BlockFi began operating as a crypto lender and later became known for interest accounts and lending products.
BlockFi's interest account product became one of the most visible centralized crypto yield offerings.
BlockFi agreed to a settlement with the SEC and state regulators related to its interest account product.
BlockFi paused or limited activity after the collapse of FTX and related uncertainty over exposure.
BlockFi and affiliated debtors filed for Chapter 11 bankruptcy protection after FTX-related disruption.
BlockFi announced that it had emerged from bankruptcy and would proceed with wind-down and recovery efforts.
Evidence dossier
U.S. Securities and Exchange Commission
Kroll Restructuring Administration