BlockFi
BlockFi was a crypto lending platform, now a bankruptcy estate paying out creditors.
On the record
Checkpoint: Further creditor distributions and filings tied to the Bermuda court order folding unclaimed wallets into the US estate
The call
BlockFi is closed, its remaining work is a Plan Administrator finishing creditor payouts, not a company facing competitors.
BlockFi was a company that lent money to cryptocurrency traders and paid interest to customers who deposited crypto with it. The business model turned out to be fragile because it hid dangerous risks: it lent heavily to a few big borrowers like FTX, which secretly went broke, and when those borrowers failed, BlockFi could not pay back depositors. Similar lenders like Celsius and Voyager collapsed the same way. Today BlockFi exists only as a legal process in bankruptcy court; it stopped operating in mid-2024 and is now just distributing whatever money remains to people who are owed money. The main thing to watch is whether the government's forfeiture lawsuit slows down or reduces those final payouts, and whether scammers try to trick former customers with fake distribution emails.
Why
01
AI pressure: None apparent. There is no operating business left for AI to disrupt or assist. Could AI do the core job? Yes, likely.
02
Bigger players: None apparent. No rival can take share from a company that no longer takes customers or writes loans. Could a giant copy it? Yes, easily.
03
What protects it. Nothing protects BlockFi as a business, it does not exist anymore, only a court-supervised wind-down estate does.
What would change this call
Final distribution dates announced via Kroll portal following the October 2025 Bermuda court order. Shows progress or delay in returning remaining funds to former BlockFi customers.
Ruling in DOJ forfeiture adversary case (USCOURTS-njb-3_23-ap-01144) in New Jersey bankruptcy court. Would show whether forfeited assets reduce final creditor payouts.
Any announcement of a third party acquiring the BlockFi brand or name out of wind-down. Would indicate the entity or brand being revived rather than fully dissolved.
Ruling in DOJ forfeiture adversary case (USCOURTS-njb-3_23-ap-01144) in New Jersey bankruptcy court. Would show whether forfeited assets reduce final creditor payouts.
Any announcement of a third party acquiring the BlockFi brand or name out of wind-down. Would indicate the entity or brand being revived rather than fully dissolved.
Key numbers
- Filed Chapter 11 on Nov 28, 2022
- Court approved 100% customer recovery plan
- App and platform shut down
Named risks
- DOJ forfeiture adversary litigation in NJ bankruptcy court could delay or reduce final creditor payouts.
- Active phishing and scam campaigns impersonate BlockFi distribution communications targeting former customers.
- Bermuda liquidation and U.S. estate coordination could slow final distribution timeline.
- BlockFi brand considered radioactive, precluding any relaunch or acquisition of the name.
Rivals, as read in July 2026
| Rival | Direction | Evidence |
|---|---|---|
| Celsius Network | losing to | Both collapsed into bankruptcy 2022-2023 but Celsius CEO got a 12-year sentence, Oct 2025 report |
| Voyager Digital | losing to | Collapsed in the same 2022-2023 crypto-credit contagion as BlockFi |
| Genesis Global Capital | losing to | Collapsed in the same 2022-2023 crypto-credit contagion as BlockFi |
| Galaxy Digital | gaining on | Hired BlockFi founder Zac Prince to launch competing Galaxy One product, Oct 6 2025 |
| Coinbase | gaining on | Surviving crypto incumbent free to serve BlockFi's former customer base after its 2022 collapse |
| Kraken | gaining on | Surviving crypto incumbent operating in lending-adjacent space BlockFi exited in 2022 |
Questions people ask
- Is BlockFi still operating in 2026?
- No. BlockFi filed Chapter 11 on November 28, 2022, its plan was confirmed in October 2023, and its web platform and app were retired around May 2024. Today it exists only as a court-supervised wind-down estate managed by Plan Administrator M3 Partners, with no products, customers, or workforce.
- Will BlockFi customers get their money back?
- Largely yes. On July 25, 2024, a court approved a plan targeting 100% recovery for eligible customers and unsecured creditors, after the Plan Administrator sold BlockFi's $874.5M FTX/Alameda settlement claims at a premium in July 2024. Haynes Boone reported over $1 billion recovered by September 6, 2024.
- Who is BlockFi's biggest competitor now?
- BlockFi has no active competitors because it has no active business; it is a bankruptcy estate. Its direct crypto-lending peers, Celsius, Voyager, and Genesis, all also collapsed into bankruptcy in 2022-2023 in the same crypto-credit contagion, so the entire category disappeared together.
- Could AI replace BlockFi?
- The question does not apply. BlockFi has no active revenue-generating workflows, like underwriting or customer support, left for AI to replace. Its only remaining asset is a legal claims process under U.S. and Bermuda court supervision, following its November 2022 Chapter 11 filing.
- What happened to BlockFi founder Zac Prince?
- As of October 6, 2025, Zac Prince was named to lead Galaxy One, a new retail yield and banking product at Galaxy Digital. This is a separate company from BlockFi. Prince avoided criminal charges, unlike Celsius CEO Alex Mashinsky, who received a 12-year prison sentence.
- Who owns BlockFi now?
- BlockFi is controlled by its creditors through a Chapter 11 plan confirmed in October 2023. It is run by Plan Administrator M3 Partners with outside counsel Haynes Boone, executing distributions rather than operating a business. There is no remaining equity ownership in the traditional sense.
Timeline
- 2025-10-28Bermuda court authorized folding unclaimed wallet assets into U.S. wind-down estate
- 2025-10-09Founder Zac Prince tells Protos BlockFi reached about $13B in customer assets pre-collapse
- 2025-10-06Zac Prince named to lead Galaxy One retail banking product at Galaxy Digital
- 2024-09-06Haynes Boone announces over $1 billion recovered for BlockFi creditors
- 2024-07-25Court approves plan for 100% recovery to customers and unsecured creditors
- 2024-07-22Plan Administrator announces FTX claims sale at premium, targets full recovery
- 2024-05BlockFi web platform and mobile app retired
- 2024-03BlockFi settles with FTX and Alameda estates for $874.5M in claims
- 2023-11BlockFi International Ltd. placed under Bermuda compulsory winding-up order
- 2023-10Chapter 11 plan confirmed; BlockFi enters creditor-controlled wind-down
Revision history
29 July 2026
First assessed. Little protection left. The text above is fixed as of this date and is not edited afterwards.
In the same band
Sources
- wikipedia.org (BlockFi)
- TechCrunch (2021-03-11)
- CB Insights (2026-02-11)
- PR Newswire (2021-03-11)
- PR Newswire (2024-07-22)
- Cryptonews (2024-07-27)
- Haynes Boone (2024-09-06)
- Supreme Court of Bermuda reasons for order (2025-10-28)
- Protos (2025-10-09)
- Livemint (2025-10-06)
- blockeden.xyz (2026-04-11)
- United States Bankruptcy Court