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21 22 <meta charset="UTF-8"> 23 <meta name="viewport" content="width=device-width"> 24 <link rel="icon" type="image/png" href="/img/favicon.ico"> 25 <!-- Primary Meta Tags --> 26 <title>Official Committee of Unsecured Creditors of BlockFi</title> 27 <meta name="title" content="Official Committee of Unsecured Creditors of BlockFi"> 28 <meta name="description" content="This is the website for the Official Committee of Unsecured Creditors of BlockFi. Updates will be provided on this website. Y"> 29 <!-- Open Graph / Facebook --> 30 <meta property="og:type" content="website"> 31 <meta property="og:url" content="https://blockfiofficialcommittee.com"> 32 <meta property="og:title" content="Official Committee of Unsecured Creditors of BlockFi"> 33 <meta property="og:description" content="This is the website for the Official Committee of Unsecured Creditors of BlockFi. Updates will be provided on this website. Y"> 34 <meta property="og:image" content="https://blockfiofficialcommittee.com/img/blockfi-share-image.jpg"> 35 <!-- Twitter --> 36 <meta property="twitter:card" content="summary_large_image"> 37 <meta property="twitter:url" content="https://blockfiofficialcommittee.com"> 38 <meta property="twitter:title" content="Official Committee of Unsecured Creditors of BlockFi"> 39 <meta property="twitter:description" content="This is the website for the Official Committee of Unsecured Creditors of BlockFi. Updates will be provided on this website. Y"> 40 <meta property="twitter:image" content="https://blockfiofficialcommittee.com/img/blockfi-share-image.jpg"> 41 42 <link rel="apple-touch-icon" sizes="180x180" href="/img/apple-touch-icon.png"> 43 <link rel="icon" type="image/png" sizes="32x32" href="/img/favicon-32x32.png"> 44 <link rel="icon" type="image/png" sizes="16x16" href="/img/favicon-16x16.png"> 45 <link rel="manifest" href="/img/site.webmanifest"> 46 47 48 <!--[if lt IE 9]> 49
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59 60 <![endif]--> 61</head> 62 63<body class="faq"> 64 <main class="l-wrap faq"> 65 66 67<nav class="dropdown main-nav"> 68 <div class="content-lg flex-grid-xs flex-grid-center flex-grid-space-between"> 69 <a href="/" class="main-logo"> 70 <img src="/img/blockfi-logo--light--lg.png" alt="BlockFi UCC"> 71 </a> 72 73 <button class="btn-toggle main-menu light" data-target="main-navigation"> 74 <small id="label">Menu</small> 75 <span id="one"></span> 76 <span id="two"></span> 77 <span id="three"></span> 78 </button> 79 80 <ul class="main-nav" id="main-navigation"> 81 <li class="active"> 82 <a href="/faq"> 83 FAQ 84 </a> 85 </li> 86 <li > 87 <a href="https://restructuring.ra.kroll.com/blockfi/Home-DocketInfo" target="_blank"> 88 Court Filings 89 </a> 90 </li> 91 92 <li> 93 <a href="https://twitter.com/BlockFiUCC" target="_blank"> 94 Twitter 95 </a> 96 </li> 97 </ul> 98 99 </div> 100</nav> 101 102 103<header class="main-header header-auto-height flex-grid-xs flex-grid-center pad-tb-sm center"> 104 <div class="content"> 105 <h1> 106 FAQ 107 </h1> 108 </div> 109</header> 110<section class="pad-tb-x white-bg"> 111 <div class="content"> 112 <div class="marg-tb-sm"> 113 <a href='/faq/plan' class='btn btn-sm primary-outline'>Plan FAQ</a> 114 <a href='/faq/claims-filing' class='btn btn-sm primary-outline'>Claims Filing FAQ</a> 115 </div> 116 117 118 <ul class="list"> 119 120 <li class="marg-lr-none font-size--sm"> 121 <a href="#faq1"> 122 What does it mean that BlockFi filed for Chapter 11 Bankruptcy? 123 </a> 124 </li> 125 126 <li class="marg-lr-none font-size--sm"> 127 <a href="#faq2"> 128 How long does the automatic stay last? 129 </a> 130 </li> 131 132 <li class="marg-lr-none font-size--sm"> 133 <a href="#faq3"> 134 What is the Official Committee of Unsecured Creditors? 135 </a> 136 </li> 137 138 <li class="marg-lr-none font-size--sm"> 139 <a href="#faq4"> 140 What is the make-up of the BlockFi Committee? 141 </a> 142 </li> 143 144 <li class="marg-lr-none font-size--sm"> 145 <a href="#faq5"> 146 Does the Committee have professional assistance? 147 </a> 148 </li> 149 150 <li class="marg-lr-none font-size--sm"> 151 <a href="#faq6"> 152 What do creditors need to do in terms of the bankruptcy proceeding? 153 </a> 154 </li> 155 156 <li class="marg-lr-none font-size--sm"> 157 <a href="#faq7"> 158 How do I ensure that my claim is properly calculated and considered in the case? 159 </a> 160 </li> 161 162 <li class="marg-lr-none font-size--sm"> 163 <a href="#faq8"> 164 Is this relevant for international creditors? 165 </a> 166 </li> 167 168 <li class="marg-lr-none font-size--sm"> 169 <a href="#faq9"> 170 Will I recover my money? 171 </a> 172 </li> 173 174 <li class="marg-lr-none font-size--sm"> 175 <a href="#faq10"> 176 What can I expect next? 177 </a> 178 </li> 179 180 <li class="marg-lr-none font-size--sm"> 181 <a href="#faq11"> 182 I have questions about how to file a proof of claim? Â Can you help explain that process? 183 </a> 184 </li> 185 186 </ul> 187 188 189 190 <article class="pad-tb-sm" id="faq1" style="scroll-margin-top: 100px;"> 191 <h2 class="font-size--md"> 192 What does it mean that BlockFi filed for Chapter 11 Bankruptcy? 193 </h2> 194 <p> 195 Chapter 11 is the form of bankruptcy usually used by businesses. Any company can voluntarily file for Chapter 11. Doing so puts an immediate freeze (called the âautomatic stayâ) on all efforts to seize company assets, by litigation or otherwise. When BlockFi filed for Chapter 11 protection (in November 2022), the automatic stay immediately went into effect. As a result, customers could not reclaim money from the BlockFi platform. 196 </p> 197 </article> 198 <hr class="thin color-gray marg-tb-none marg-lr-auto" style="width: 70%; max-width: 700px;"> 199 200 <article class="pad-tb-sm" id="faq2" style="scroll-margin-top: 100px;"> 201 <h2 class="font-size--md"> 202 How long does the automatic stay last? 203 </h2> 204 <p> 205 The automatic stay does not remain in place forever. You will eventually receive value back. This typically happens when: (1) the Bankruptcy Court approves a âplanâ (it can be a âplan of reorganizationâ or a âplan of liquidationâ) that provides for distributions to the creditors; or (ii) the Chapter 11 is converted to a Chapter 7 case, where a trustee is appointed to liquidate the assets and distribute the proceeds to creditors. A plan must meet numerous evidentiary requirements before it can be approved by the Bankruptcy Court, including sufficient proof that it offers creditors more value than they will receive in a Chapter 7 liquidation. For BlockFi â which is not now an operational business â these evidentiary requirements are difficult. 206 <br><br> 207 That said, the Bankruptcy Code gives BlockFi time to explore its options and work towards a plan that the Bankruptcy Court can ultimately approve. That is
207where the case stands at present. We expect the case will continue in this âexplorationâ phase for several more months. 208 </p> 209 </article> 210 <hr class="thin color-gray marg-tb-none marg-lr-auto" style="width: 70%; max-width: 700px;"> 211 212 <article class="pad-tb-sm" id="faq3" style="scroll-margin-top: 100px;"> 213 <h2 class="font-size--md"> 214 What is the Official Committee of Unsecured Creditors? 215 </h2> 216 <p> 217 You might think of the Official Committee of Unsecured Creditors (also referred to as the âOfficial Creditors Committeeâ or just the âCommitteeâ) as BlockFiâs âadversaryâ in this case. Chapter 11 is, in many respects, an adversary process, like other kinds of litigation. But, the Bankruptcy Code does not intend for the company and Committee to litigate all issues to judgment. It hopes that the sides can work together, ultimately reaching agreement as to how best the case should come to an end. 218 <br><br> 219 The Committee is appointed by the U.S. federal government (specifically, the Department of Justice) in every Chapter 11 case. It is comprised of unsecured creditors that the government believes: (i) individually, are sophisticated, unconflicted, and otherwise best able to perform the duties of Committee membership; and (ii) collectively, are representative of all of the companyâs unsecured creditors. The Official Committee owes a fiduciary duty to the unsecured creditor community, as a whole, and works to maximize value for all unsecured creditors. Committee members volunteer for this assignment and they do not receive compensation for their service. That is true even though it is a very time consuming and often quite a difficult job. 220 </p> 221 </article> 222 <hr class="thin color-gray marg-tb-none marg-lr-auto" style="width: 70%; max-width: 700px;"> 223 224 <article class="pad-tb-sm" id="faq4" style="scroll-margin-top: 100px;"> 225 <h2 class="font-size--md"> 226 What is the make-up of the BlockFi Committee? 227 </h2> 228 <p> 229 The BlockFi Committee is comprised of nine creditors. They are all sophisticated individuals who collectively entrusted BlockFi with a very considerable amount of money. The Committee is cross-representative. It includes customers: (i) holding interest accounts and wallets; (ii) who participated in private client programs, lending and trading activities; (iii) who invested with BlockFi domestically and with BlockFi International; and (iv) who instructed BlockFi to transfer funds into wallet accounts after the âpauseâ went into effect, as well as customers who did not. The Committee is working diligently to understand what happened and how to return as much money as possible, as soon as possible, to BlockFiâs customers. This requires Committee members to dedicate many hours every week to this case, despite their work and family commitments. They are doing this (again, without compensation) because â just like you â they want their money back. 230 </p> 231 </article> 232 <hr class="thin color-gray marg-tb-none marg-lr-auto" style="width: 70%; max-width: 700px;"> 233 234 <article class="pad-tb-sm" id="faq5" style="scroll-margin-top: 100px;"> 235 <h2 class="font-size--md"> 236 Does the Committee have professional assistance? 237 </h2> 238 <p> 239 Yes. The Committee has retained lawyers and financial advisors who are specialists in Chapter 11 and the particular cryptocurrency issues arising in BlockFiâs case. The professionals are working tirelessly to help the Committee learn the underlying facts, chart the best available strategy, engage with BlockFi about how to best move the case forward, and appear before the Bankruptcy Court. The Committee has also instructed
239its professionals to communicate with customers, so that BlockFiâs unsecured creditors receive information as the case progresses. This website and the Committeeâs twitter handle is intended to keep BlockFiâs unsecured creditors updated on the status of the bankruptcy case. 240 </p> 241 </article> 242 <hr class="thin color-gray marg-tb-none marg-lr-auto" style="width: 70%; max-width: 700px;"> 243 244 <article class="pad-tb-sm" id="faq6" style="scroll-margin-top: 100px;"> 245 <h2 class="font-size--md"> 246 What do creditors need to do in terms of the bankruptcy proceeding? 247 </h2> 248 <p> 249 The Committee is intended to be the representative body handling most case issues for unsecured creditors. Unsecured creditors are not expected to dedicate a comparable amount of time (and personally spend the money) necessary to figure out the best solution for BlockFiâs bankruptcy. You are, of course, welcome to participate in the case as much as you would like. But, please know that the Committee is working extremely hard on behalf of all unsecured creditors, including you. 250 </p> 251 </article> 252 <hr class="thin color-gray marg-tb-none marg-lr-auto" style="width: 70%; max-width: 700px;"> 253 254 <article class="pad-tb-sm" id="faq7" style="scroll-margin-top: 100px;"> 255 <h2 class="font-size--md"> 256 How do I ensure that my claim is properly calculated and considered in the case? 257 </h2> 258 <p> 259 Each creditor can file a âproof of claimâ in the case. This is your statement as to how much you believe BlockFi owes you, and it is a necessary filing if you believe that BlockFi has incorrectly recorded your debt in its books and records (called, in bankruptcy, the companyâs âSchedulesâ). BlockFi is reaching out to creditors to provide claim amounts as presently listed on the Schedules. You do not, however, need to wait on that outreach from BlockFi. You can go ahead and file your proof of claim now, and it is not a difficult document to fill out and return. 260 <br><br> 261 The deadline for filing your proof of claim is <strong><u>March 31, 2023, at 5:00 p.m. Eastern Time.</u></strong> Each creditor should file his/her proof of claim so that it is <strong><u>received</u></strong> by this date. This deadline applies regardless of whether you have or have not received a communication from BlockFi respecting your claim amount as listed on the Schedules. Instructions for preparing and filing the proof of claim can be found <a href='https://restructuring.ra.kroll.com/blockfi/EPOC-Index' target='_blank'>here</a>. 262 </p> 263 </article> 264 <hr class="thin color-gray marg-tb-none marg-lr-auto" style="width: 70%; max-width: 700px;"> 265 266 <article class="pad-tb-sm" id="faq8" style="scroll-margin-top: 100px;"> 267 <h2 class="font-size--md"> 268 Is this relevant for international creditors? 269 </h2> 270 <p> 271 Yes. It is relevant to all creditors, U.S.-domestic and international, regardless of which BlockFi entity that you entrusted with your money. All BlockFi entities are all part of the Chapter 11 process, and so too are all BlockFi customers and creditors. 272 </p> 273 </article> 274 <hr class="thin color-gray marg-tb-none marg-lr-auto" style="width: 70%; max-width: 700px;"> 275 276 <article class="pad-tb-sm" id="faq9" style="scroll-margin-top: 100px;"> 277 <h2 class="font-size--md"> 278 Will I recover my money? 279 </h2> 280 <p> 281 BlockFi is in a Chapter 11 bankruptcy because it does not have enough money to immediately repay its creditors and honor customer returns. The bankruptcy estate does, however, have a considerable amount of assets, some that are easy to value (e.g., cash on hand) and others that are less easy to value (e.g., general business assets). BlockFi also had significant business dealings with FTX. How much creditors ultimate recover and when are questions that depends, in part, on how much and how easily BlockFi can recoup value from FTXâs bankruptcy. As a result, it is difficult to predict how much of your money you will receive and when, but please know that we are working diligently to find the best resolution for you. 282 </p> 283 </article> 284 <hr class="thin color-gray marg-tb-none marg-lr-auto" style="width: 70%; max-width: 700px;"> 285 286 <article class="pad-tb-sm" id="faq10" style="scroll-margin-top: 100px;"> 287 <h2 class="font-size--md"> 288 What can I expect next? 289 </h2> 290 <p> 291 We will be providing relevant updates on this site and our <a href='https://twitter.com/BlockFiUCC' target='_blank'>Twitter page.</a> 292 </p> 293 </article> 294 <hr class="thin color-gray marg-tb-none marg-lr-auto" style="width: 70%; max-width: 700px;"> 295 296 <article class="pad-tb-sm" id="faq11" style="scroll-margin-top: 100px;"> 297 <h2 class="font-size--md"> 298 I have questions about how to file a proof of claim? Â Can you help explain that process? 299 </h2> 300 <p> 301 We have created a separate FAQ that address this. Â <a href='/faq/claims-filing'>View the Proof of Claim FAQ</a> 302 </p> 303 </article> 304 <hr class="thin color-gray marg-tb-none marg-lr-auto" style="width: 70%; max-width: 700px;"> 305 306 307 </div> 308</section> 309
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