BlockFi collapse — what creditors were owed and recovered (2022)
The plan administrator's stated target is 100% of the dollar value of client claims measured at the 28 November 2022 petition date. That is not a return of the same coins: bitcoin was near $16,000 at the petition date, so a client paid 100% receives the November 2022 dollar figure. Recovery differs by account type because separate legal entities held different asset-to-claims ratios; clients with claims under $3,000 could elect a convenience class paying 50% in cash instead. A large share of the recovery came from selling $874.5 million of claims against FTX and Alameda at a premium in July 2024, so the outcome is contingent on the FTX estate's own recoveries.
Case facts
| Customers lost access | |
|---|---|
| Insolvency filed | November 28, 2022 |
| Business | Lender or yield platform |
| Jurisdiction | United States |
| Procedure | Chapter 11D.N.J. · 22-19361 |
| Owed to creditors | $1,000,000,000Published estimates range $1,000,000,000 to $10,000,000,000100,000 creditors |
| Distributed so far | Nothing |
| Recovery | 100%Petition-date USD — Claims were fixed in dollars at the date the case opened, and repaid against that fixed figure. Says nothing about the value of the assets originally deposited. |
| Cause | ContagionAlameda loan exposure; FTX rescue facility collapsed |
| Case status | Distributions under way |
What happened
BlockFi offered interest-bearing crypto accounts and crypto-backed loans to retail and institutional clients. It was damaged first by the Three Arrows Capital default in mid-2022, then rescued by a credit facility from FTX US, and finally taken down when FTX itself failed. About $680 million of loans to Alameda Research were disclosed as central to the filing. BlockFi paused platform activity on 10 November 2022 and filed for Chapter 11 in the District of New Jersey on 28 November 2022, case 22-19361, before Judge Michael Kaplan.
The petition estimated more than 100,000 creditors and placed assets and liabilities in the $1 billion to $10 billion band; detailed schedules were filed on 12 January 2023, but the estate has not published a single headline claims total. The headline liabilities figure recorded here is therefore the floor of that petition band, with the full band carried in the low and high fields. The largest scheduled obligations included $729 million under an indenture for interest-account clients and a $275 million unsecured claim held by FTX US.
The plan was confirmed in September 2023 and took effect in October 2023, converting the case into a wind-down under plan administrator Mohsin Meghji. A March 2024 settlement produced $874.5 million of claims against FTX and Alameda, which were sold on 10 July 2024 at a premium to face value, enabling the administrator to announce a full recovery on allowed customer and general unsecured claims.
By April 2025 about 97% of U.S. clients had claimed distributions but only about 43% of non-U.S. clients had.
Related
- Official claims site: https://restructuring.ra.kroll.com/blockfi/
Sources
- BlockFi Plan AdministratorPrimary · retrieved 2026-08-21
- BlockFi Inc.Primary · retrieved 2026-08-21
- Kroll Restructuring Administration (claims agent)Primary · retrieved 2026-08-21
- U.S. Bankruptcy Court, District of New JerseyCourt filing · retrieved 2026-08-21
- CNBCSecondary · retrieved 2026-08-21
- CoinDeskSecondary · retrieved 2026-08-21
- ForbesSecondary · retrieved 2026-08-21
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