BlockFi filed for Chapter 11 bankruptcy on November 28, 2022, just weeks after the FTX collapse that triggered its downfall. The company had significant exposure to FTX through credit facilities and deposits. Creditors with funds on BlockFi are entitled to participate in the bankruptcy distribution process.

Who Is Affected by the BlockFi Bankruptcy?

If you had any of the following on BlockFi at the time of filing, you are a creditor:

⚠️ BIA vs. Wallet accounts

BlockFi Wallet accounts and BIA accounts have different treatment in the bankruptcy. Wallet holders generally have stronger claims as their assets are treated more like held property. BIA holders are treated as unsecured creditors, meaning they receive a lower priority in the payment waterfall.

Step 1: Check If You Already Have a Claim Filed

BlockFi's bankruptcy is administered by Kroll Restructuring Administration — the same firm handling the FTX case. Go to the Kroll portal and search using your BlockFi registered email address.

The estate may have auto-filed a scheduled claim on your behalf based on account records. Check this before assuming you need to file from scratch.

Step 2: File or Supplement Your Claim

  1. 1Go to restructuring.ra.kroll.com/BlockFi and log in or create an account
  2. 2Search for your scheduled claim using your email
  3. 3If your scheduled claim amount is wrong, file a proof of claim to correct it — bring screenshots or transaction records
  4. 4Complete identity verification when prompted
  5. 5Monitor the portal for distribution announcements and complete any additional steps required

What Is the Expected Recovery Rate?

BlockFi's recovery rates depend on account type and the outcome of litigation against FTX, which was a major creditor of BlockFi at the same time BlockFi was a creditor of FTX. The FTX estate's large distributions to BlockFi (as an FTX creditor) flow through to BlockFi's own creditors.

Recovery estimates for BlockFi creditors have varied widely. Wallet holders have generally been projected to recover a higher proportion of their assets than BIA holders. Consult the BlockFi plan documents on the Kroll portal for the current recovery projections for your claim class.

What Is the Distribution Timeline?

BlockFi distributions have been proceeding in stages, tied partly to the resolution of BlockFi's own claims against FTX. As FTX distributions occur, funds flow to BlockFi's estate, enabling further distributions to retail creditors. The timeline for complete distribution is multi-year.

Watch out for BlockFi recovery scams. Several fraudulent "claim recovery" services have appeared targeting BlockFi creditors, offering to accelerate or increase distributions in exchange for fees. These are scams. All legitimate BlockFi communications come through the Kroll portal or to your registered email.

See All Crypto Claim Guides

We cover FTX, Celsius, Mt. Gox, BlockFi and more in one place.

View All Crypto Claims →