BlockFi Cleared to Repay Customers Through Liquidation Plan

Failed crypto lender BlockFi Inc. won bankruptcy court approval on its plan for shutting down its business, a milestone that could result in customers getting back a portion of what they’re owed by the end of the year.

Judge Michael Kaplan said during a hearing Tuesday he would approve BlockFi’s liquidation plan which was supported by a committee representing customer interests and creditors that voted to support it. Some BlockFi creditors are slated to receive partial repayment in Bitcoin or Ethereum, according to court documents.

BlockFi unsecured creditors could get between roughly 35% to 63% of what they’re owed, according ...