Cryptocurrency platform BlockFi has been given an extension until May 15 to submit its Chapter 11 or reorganization plan, a decision made Wednesday at a U.S. Bankruptcy court in New Jersey. The application, made due to the severe market turmoil caused by the FTX fiasco in November of last year, means BlockFi stands to gain a few extra weeks to finalize its restructuring arrangement plans.

During the hearing, BlockFi lawyer Joshua Sussberg shared that the Bitcoin lender intends to submit a bankruptcy-exit plan for review by the middle of next month, and is exploring the options of selling its assets or seeking sponsorship from an outside source. The court, presided by U.S. Bankruptcy Judge Michael B. Kaplan, decided the slight delay was worth it, as this would ensure an orderly process that wouldn’t involve multiple filing plans or waste of resources.

The court denied the BlockFi users’ committee request to receive control of the bankruptcy case instead of the previous owners. This was despite the committee’s statement that the Bitcoin stored on the platform should be repaid to creditors immediately and that many unsecured consumers had lost their life savings as a result. Judge Kaplan made an exception, giving BlockFi exclusive control within their specified timeframe extension.

Though it remains to be seen what the exact consequences of the extension may be, the news is certainly a positive one for BlockFi and those hoping to retrieve their funds. In the meantime, the Bitcoin lending platform is encouraging its users to stay updated with the latest changes and reiterating its commitment to ensuring creditors are compensated as soon as possible.



Other News from Today