1. What did BlockFi announce?
To impact the restructuring, BlockFi has filed for voluntary reduction underneath Chapter 11 of the U.S. Chapter Code in america Chapter Courtroom for the District of New Jersey.
2. What’s Chapter 11?
Chapter 11 is a US course of for companies to restructure their obligations whereas persevering with to function.
3. Why did BlockFi file for Chapter 11 chapter?
BlockFi’s Chapter 11 case permits BlockFi to stabilize its enterprise and offers BlockFi the chance to finish a reorganization that maximizes worth for all stakeholders.
This motion follows the stunning occasions surrounding FTX and its affiliated enterprise entities (“FTX”) and the tough however vital resolution to droop most exercise on the platform.
The court-supervised restructuring course of is clear and encourages dialogue amongst all stakeholders.
4. Does BlockFi retain 100% of FTX buyer deposits?
Rumors that almost all of BlockFi property are held by FTX are false. supplied, nonetheless, that, as shared, Alameda’s debt owed to us, property held by FTX.com, and FTX and associated enterprise entities, together with unused quantities from the FTX.US credit score line. We’ve important publicity.
5. How will FTX Chapter 11 have an effect on BlockFi?
I used to be shocked by the information of FTX and Alameda. We realized of this case by way of Twitter, similar to the remainder of the world. As a result of unclear standing of FTX.com, FTX.US and Alameda, we’re unable to conduct enterprise as standard.
Whereas we are going to proceed to work to gather all debt owed to BlockFi, we anticipate delays in accumulating the debt owed to us by FTX because it pursues its personal chapter proceedings. Our precedence is and can proceed to be to guard our clients and their pursuits.
6. What does this imply for purchasers?
Appearing in the very best curiosity of our purchasers is our high precedence and continues to maneuver us ahead. We’ll proceed to speak with our purchasers all through the method to allow them to hear straight from us.
At the moment, we’re not requesting permission to revive platform exercise. At the moment, we anticipate consumer complaints to be addressed by way of the Chapter 11 course of.
7. Ought to I take away the BlockFi app or account?
For now, we advocate retaining your BlockFi app and account.
At the moment, withdrawals from BlockFi are nonetheless suspended. We additionally proceed to ask our purchasers to not ship deposits to BlockFi Pockets or Curiosity Accounts.
8. When will the BlockFi rebuild course of be accomplished?
BlockFi goals to rebuild and end Chapter 11 as rapidly as attainable in line with the Chapter 11 plan. The ultimate timing of Chapter 11 instances will range and can rely on a number of unknowns. We respect the Chapter 11 course of and attempt for transparency and open dialogue with all stakeholders. is engaged on
9. How will I be notified of the progress of my chapter?
10. What does BlockFi do to guard my info and crypto property?
Knowledge and asset safety is a high precedence for all BlockFi staff. We take proactive steps to guard each our platform property and knowledge.
11. I’ve further questions relating to my utility. How can I get extra info?
12. What does this imply for private loans and private mortgage collateral?
Purchasers can not put up new funds to BlockFi presently. Because of this, we’ve put your mortgage into administrative grace.
Any excellent quantities, together with curiosity and maturity funds, might be withheld till additional discover. After 11/11/2022, the rate of interest on the mortgage might be set at 0% and no further curiosity might be charged to the consumer if the mortgage is overdue after 11/11/2022. The mortgage won’t be reported as delinquent to any credit score. station.
Whereas the mortgage is pending, you aren’t anticipated to make any funds at maturity and there might be no late charges related to funds, together with at maturity. Additionally, if computerized funds are enabled on your account, they’re disabled.
13. Why are my private loans exhibiting as delinquent?
14. Will BlockFi liquidate retail loans if the mortgage reaches liquidation loan-to-value (“LTV”) whereas platform exercise is suspended?
Purchasers can not put up new funds to BlockFi presently. Because of this, we’re placing your mortgage into administrative grace. BlockFi has suspended margin name necessities and computerized liquidation at pre-defined loan-to-value ranges.