Crypto lender BlockFi will now refund Earn customers

The crypto platform in liquidation BlockFi started the second phase from refund for its users. After the Wallet customersthe Earn customers eligible customers are entitled to partial compensation.

With Bitcoin at over $40,000, the platforms that fell during the last crypto winter are in a better position to refund their users.

While FTX now believes it can fully refund its customers, BlockFianother major crypto player, which declared bankruptcy in November 2022 and went into liquidation last year, has launched its next repayment phase.

After refunding over $500 million to a hundred thousand customers with Wallet accounts, BlockFi will now compensate holders of savings or Earn accounts.

“Starting in February, customers of BlockFi’s remaining products, including the BlockFi Interest Account (BIA), loan customers and private customers, may be able to initiate withdrawal requests. To be eligible for distribution, claimants must have an authorized claim. claimants who have filed a claim that has not been reconciled and authorized will be eligible after their claim has been reconciled,” reads a statement.

BlockFi plans to return between 20% and 40% of “authorized claims from eligible customers”. The firm also expects to recover funds from the FTX estate, which will be used to inflate refunds for its users.

On January 22, 2024, BlockFi completed returning crypto from its Wallet Product, sending back all requested client assets in full in kind to nearly 130,000 clients, totaling over $500MM worth of crypto. Today, BlockFi is announcing the start of its next wave of distributions.

– BlockFi (@BlockFi) February 1, 2024

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