BlockFi Updates Frozen Account Holders On Claims Process

In a January 30th hearing, BlockFi’s proposal for its claims process was approved by the Court and the company also received interim approval to redact its clients’ names and other personal information from its declared Schedule of Assets and Liabilities.

BlockFi Claims Process

BlockFi says clients will soon receive information from its claims agent, Kroll, which will include information about how to view account balances, details regarding the client’s individual claims, deadlines for the proof of claim process, and instructions on how to file a proof of claim. Kroll will contact clients via mail and/or by email to the address associated with the user’s BlockFi account.

Importantly, the company says any account holders whose contact details have changed since it filed for bankruptcy last November will need to contact Kroll directly to update their information by emailing [email protected].

BlockFi Proof Of Claim Filing Date

BlockFi’s general bar date, which is the deadline to submit proof of claims and applies to all clients, has been set for 5:00 P.M. Eastern Time on the 31st of March. The company says clients will not need to submit a claim if they agree with the amounts that BlockFi filed for them in the Schedules of Assets and Liabilities. More information about the process can be found at a special Kroll website https://restructuring.ra.kroll.com/blockfi.

BlockFi Rewards Card Status

BlockFi says its Rewards Card is paused and cannot be used to make purchases. For any business making claims related to the BlockFi card, the company says the “BlockFi Rewards Card is issued through a third party and any claims on account of such statements are not claims against BlockFi.”

Cardholders are still required to make their regular statement payments, but importantly, any cardholder assets held on the BlockFi platform cannot be used towards making those payments.

Will You Have To Pay Your BlockFi Loan Back?

Anyone who took a loan from BlockFi will most likely have secured it using their BlockFi cryptocurrency balance as collateral. This collateral has been frozen along with all BlockFi’s other assets and the company says clients should not repay their loans at this time.

The interest rate on BlockFi loans was set to 0% from November 11, 2022, and no additional interest has been applied to the loans since that date. When a loan hits its maturity date, BlockFi says borrowers should also not make any payment and outstanding loans are not being reported as delinquent to any credit bureaus. BlockFi has maintained its blog and Twitter pages and says clients should check there for updates regularly.