Topic: BlockFi Bankruptcy - Creditors Thread – Updates & Help -Lets get some funds back (Read 154 times)

Please find below links to the following important documents, related to the bankruptcy proceedings of BlockFi Inc., et al. (the "Debtors"), Case No. 22-19361, United States Bankruptcy Court for the District of New Jersey:
 
 · Notice of Bar Dates for Submitting Proofs of Claim and Claims Under Section 503(b)(9) of the Bankruptcy Code Against the Debtors. General Bar Date: March 31, 2023, at 5:00 p.m. (prevailing Eastern time). 
 
· Guide to Filling out Your Proof of Claim Form(s) 

To file a proof of claim, to obtain a downloadable proof of claim form, or to obtain additional information on the Debtors’ cases free of charge, please visit https://restructuring.ra.kroll.com/blockfi/EPOC-Index. 

PROOFS OF CLAIM MUST BE SUBMITTED BY MAIL, BY HAND, OR THROUGH KROLL RESTRUCTURING ADMINISTRATION LLC’S WEBSITE.  PROOFS OF CLAIM SUBMITTED BY FACSIMILE OR ELECTRONIC MAIL WILL NOT BE ACCEPTED AND WILL NOT BE DEEMED TIMELY SUBMITTED.

All known creditors of the Debtors, as of the November 28, 2022 petition date, are listed on the Debtors’ Schedules of Assets and Liabilities (“Schedules”), filed with the Court on January 12, 2023.  In addition, the Debtors listed certain amounts held by clients in BlockFi Wallet Accounts on the Debtors’ Statements of Financial Affairs (“Statements”).

To protect the confidentiality of individual clients in these cases, the names and addresses of clients are not detailed on the publicly filed Schedules and Statements.  Information relating to your Scheduled Claim(s) and/or your Wallet Account Balance(s) (as of November 10, 2022, at 8:15 pm prevailing Eastern Time (equivalent to November 11, 2022, at 1:15am UTC)) is below.  For additional information please contact Kroll by phone at 888.773.0375 (Toll-free) or 646.440.4371 (International).

The Amount, Nature, and Priority of your Scheduled Claim(s) are set forth below.  If you agree with the nature, amount, and classification of your Claim as listed in the Debtors’ Schedules, and if you do not dispute that your Claim is only against the Debtor specified by the Debtors, and if your Claim is not described as “disputed,” “contingent,” or “unliquidated,” you need not submit a Proof of Claim. Otherwise, or if you decide to submit a Proof of Claim, you must do so before March 31, 2023, at 5:00 p.m. (prevailing Eastern time).

BlockFi International Ltd. General Unsecured; Amount $[redacted]; Basis: BIA
BlockFi International Ltd.; General Unsecured; Amount $[redacted]; Basis: BIA Interest

Custodial BlockFi Wallet Account contents as listed on Statement of Financial Affairs Question 21 are set forth below.  Clients do not have a Scheduled Claim for the below BlockFi Wallet Account.  (If you are not listed on the Debtors’ Statements as having Custodial BlockFi Wallet Account contents, no information will appear below.)

Debtor: BlockFi International Ltd.; Currency Code: usdt; Value: [redacted]
Debtor: BlockFi International Ltd.; Currency Code: eth; Value: [redacted]

Beginning today, BlockFi clients will receive important information regarding the proof of claim process from BlockFi’s claims agent Kroll.

Here are five things to know about BlockFi’s proof of claim process:

1. You can now look up your listed claim(s) and BlockFi Wallet account balance online

You can check how BlockFi has listed your claim(s) in the Schedules of Assets and Liabilities (the “Schedules”) for BlockFi Interest Account, BlockFi Private Client, and Loans, as well as your BlockFi Wallet account balances, by visiting the website of BlockFi’s claims agent, Kroll, here.

Here is an example of what you will find on your personalized dashboard on the Kroll website, which will include all of your claim(s) and your BlockFi Wallet account balances.




2. You do not need to submit a claim if you agree with your scheduled amount

If you agree with your scheduled claim information and Wallet account balance(s), then you do not need to file a claim and no further action is required at this time.

If you believe that your scheduled claim information is incorrect or incomplete, you may file a proof of claim. The bar date, or deadline to submit a proof of claim, is 5:00 P.M. (prevailing Eastern Time) on March 31, 2023.

More information on how to understand your scheduled claim amount and fill out your proof of claim form can be found here by clicking the Client Guide to Filling Out Proof Of Claim Form(s).

3. The Scheduled amounts are listed in U.S. dollars; BlockFi Wallet account balances are listed in cryptocurrency

The dollar amounts listed on the Schedules are based on coin values as of November 28, 2022, the day BlockFi filed chapter 11. Please refer to the table in question 7b on the proof of claim form to see the price that was used to convert your in-kind cryptocurrency into U.S. dollars in the Schedules.

BlockFi Wallet account balances are represented as cryptocurrency in-kind as of the platform pause, rather than dollar amounts, since they were not included in the Schedules.

4. Clients will be receiving information from Kroll, BlockFi’s claims agent

Information regarding the proof of claim process will be sent to the email address associated with your BlockFi account and mailing address on file with BlockFi as of November 28, 2022, the Petition Date. Emails will be sent from [email protected]. Please check your spam folder if you do not receive this email by February 14, 2023.

5. Here is where you can turn for additional information

We understand that you may have questions during this process. You can refer to our Proof of Claims FAQ for more information. Additional information regarding BlockFi’s chapter 11 proceedings, including the proof of claim process, can be found by visiting the website for BlockFi’s claims agent Kroll at https://restructuring.ra.kroll.com/blockfi. Clients may contact Kroll at (888) 773-0375 (Toll Free) or (646) 440-4371 (International), or email [email protected].

BlockFi

Last week, we took another important step in our chapter 11 proceedings. At the January 30th hearing, the Court approved our motion setting forth the procedures for the claims process. To protect our clients’ personal information, BlockFi received interim Court approval to redact clients’ names and other personal information from the Schedule of Assets and Liabilities.

In the coming days, clients will receive information from our claims agent, Kroll, which will include information on how to view account balances, details regarding the client’s individual claim(s), deadlines for the proof of claim process, and instructions on how to file a proof of claim. Communications from Kroll will be sent via mail and/or by email to the address associated with your BlockFi account.

BlockFi provided its claims agent, Kroll, with clients’ addresses and emails as of the Petition Date, November 28, 2022. If your address or email has since changed, or if you would like to confirm that your account details are accurate, please contact Kroll directly to update your information. Clients may contact Kroll at (888) 773-0375 (Toll Free) or (646) 440-4371 (International), or email [email protected].

The 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. (prevailing Eastern Time) on March 31, 2023. 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.

We understand that you may have questions during this process. Additional information regarding our chapter 11 proceedings, including the proof of claim process, can be found by visiting the website for BlockFi’s claims agent Kroll at https://restructuring.ra.kroll.com/blockfi.

We will continue to communicate with our clients throughout this process as we work to maximize value for all clients and stakeholders.

BlockFi

Last week, as part of our Chapter 11 process, we participated in our 341 Meeting, which is a customary meeting of creditors required for all companies who go through the Chapter 11 process. For anyone who was not able to join, this meeting was an opportunity for creditors to ask us about the state of BlockFi’s financial position and the Schedule of Assets & Liabilities we filed with the Court.

Our clients asked a lot of great questions and we wanted to share the answers to three that were asked most frequently.

1. What is the deadline to submit a proof of claim? Do I need to submit a claim?

As part of the Chapter 11 process, creditors can submit a “proof of claim” form to indicate the amount they believe they are owed by BlockFi. Clients will not need to submit a claim if they agree with the amounts BlockFi filed for them in the Schedule of Assets and Liabilities. At this time, no action is needed from you regarding the proof of claim process. We will be in contact with all clients as the process moves forward.

The Court has yet to set the bar date, or deadline, to file a proof of claim. Once the bar date is set, clients will receive information from our claims agent, Kroll, with their individual claim information and instructions regarding how to file a proof of claim if they believe a different amount is owed than what is reflected on the Schedule of Assets and Liabilities.

2. What is the status of my Retail Loan?

All retail crypto-backed loans remain in administrative forbearance. Clients should not send any amounts to BlockFi nor Scratch at this time.

Any amounts due, including interest and maturity payments, are placed on hold until further notice. The interest rate on your loan will be set to 0% from November 11, 2022, onwards and clients will not be charged additional interest after November 11, 2022. Your loan will not be reported as delinquent to any credit bureaus.

Clients should not make a payment at maturity while your loan is on hold, and there will be no late fees associated with any payments, including at maturity. Additionally, autopay has been turned off for your account, if it was enabled.

The treatment of loans will be determined as part of the bankruptcy process. We intend to keep clients updated if there are changes to the status of their loan. Additional questions related to Retail Loans can be found here.

3. What is the status of my BlockFi Card and how do I pay it?

The BlockFi Rewards Card is paused and cannot be used to make purchases at this time and new cards are not being issued. The BlockFi Rewards Card is issued through a third party and any claims on account of such statements are not claims against BlockFi. Clients are required to continue to make their regular statement payments. Assets held on the BlockFi platform cannot be used towards these payments.

At this time, however, payments can be made either through BlockFi’s portal or directly to the BlockFi Rewards Card provider, Deserve. For additional information, clients should refer to their cardholder agreement and can contact Deserve with any questions regarding fees or bill payment.

BlockFi continues to provide updates on our Chapter 11 cases through our official channels, including our blog and Twitter. Additional information regarding our Chapter 11 cases, including court documents and claim information, can be found by visiting the website for BlockFi’s claims agent Kroll.

Thank you.
BlockFi

BlockFi has filed a motion requesting approval from the Bankruptcy Court to restore withdrawal activities for BlockFi Wallet accounts (Docket No. 121).  BlockFi anticipates this motion will be heard by the Bankruptcy Court at the hearing currently scheduled for January 24, 2023, at 10:00am ET.  While the motion is pending, withdrawals from BlockFi continue to be paused.  BlockFi also continues to ask clients not to submit any deposits to BlockFi Wallet or Interest Accounts.  BlockFi encourages clients to maintain their BlockFi app and account at this time.  Any claims filed against the Debtors will be addressed through the chapter 11 process.

In the Terms, users of this Online Platform and holders of BlockFi Accounts, including owners, employees, agents and affiliates of any business, corporation, partnership or other entity that is a user, borrower or investor, are sometimes referred to in the Terms as “you” or “your.” The applicable operator of the Online Platform, BlockFi, Inc., a Delaware corporation, if you are a resident in the United States of America or a partnership or corporation organized or incorporated under the laws of the United States of America (“US client”) and BlockFi International Ltd., a Bermuda exempted company which holds a Class F (full) license from the Bermuda Monetary Authority to conduct digital assets business, if you are a resident outside of the United States of America or a partnership or corporation that is not organized or incorporated under the laws of the United States of America (“Non-US client”) is referred toas “BlockFi,” “we,” “us” or “our” in the Terms. Together, you and we may be collectively referred to as “Parties.”

Please find below a link to the following important document, related to the bankruptcy proceedings of BlockFi Inc., et al., Case No. 22-19361, United States Bankruptcy Court for the District of New Jersey:
 
· AMENDED Notice of Chapter 11 Bankruptcy Cases. Meeting of Creditors: January 20, 2023, at 10:00 a.m. (ET). By Telephone: Dial In - 888-946-3502 - Passcode – 5743575 (Related Document No. 129)

For additional information, and to download all documents filed in the Debtors’ chapter 11 cases free of charge, please visit https://restructuring.ra.kroll.com/blockfi.

Thank you for your inquiry.
On November 28, 2022, BlockFi Inc. and 8 affiliated debtors (collectively, the "Debtors" or "BlockFi") each filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of New Jersey (Trenton).

BlockFi encourages clients to maintain their BlockFi app and account at this time.

BlockFi intends to request approval from the Bankruptcy Court to restore withdrawal activities for BlockFi Wallet accounts.  However, at this time, withdrawals from BlockFi continue to be paused.  BlockFi also continues to ask clients not to submit any deposits to BlockFi Wallet or Interest Accounts.

If you believe you are owed any amount prior to the chapter 11 process, you have the right to file a proof of claim. The Debtors cannot pay any outstanding prepetition claims without specific approval from the Bankruptcy Court.  At this time, you may file a claim by mail.  However, if you wish to file a claim electronically, you may monitor the case website for when the electronic proof of claim form becomes available.  

Information, including access to court documents, instructions on how to file a proof of claim, and important dates and deadlines will be available throughout the case at https://restructuring.ra.kroll.com/blockfi.

PLEASE NOTE: Kroll is the appointed claims and noticing agent for BlockFi Inc. and 8 affiliated debtors’ chapter 11 cases.  As such, we are not permitted to provide legal or financial advice.  Further, Kroll is not permitted to accept claims via email or fax, and any such information provided via either of these methods will not constitute a claim in these proceedings.

Regards,
Kroll Inquiries