US court plans to approve BlockFis liquidation plan
Judge Michael Kaplan plans to approve BlockFis liquidation plan. Therein, some clients will receive partial compensation in Bitcoin (BTC) or Ethereum (ETH). Depending on the outcome of BlockFis legal battle with FTX exchange and Three Arrows Capital (3AC) hedge fund, unsecured creditors may receive between 35% and 63% of their funds by the end of 2023. The exact amount of compensation is uncertain and could potentially be affected by up to $1 billion. According to reports on Sep. 26, Michael Kaplan also said he will reject the objections raised by the U.S. Department of Justice‘s bankruptcy watchdog regarding the termination of BlockFi’s senior management in the liquidation plan. On Nov. 11, 2022, BlockFi suspended withdrawals following the turmoil in FTX and Alameda Research. A few days prior, Flory Marques, the platform‘s founder, had reassured clients that their products were functional and the business was free from Sam Bankman-Fried’s companies. Less than three weeks after suspending withdrawals, BlockFi and eight subsidiaries filed for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code. In May 2023, the court permitted BlockFi to return $300 million to customers with funds held in custodial accounts. However, the court did not recognize this amount as the platforms property. After a failed attempt