BlockFi
Last changed 2026-10-27 · Score recalculated — Rescored under Scoring v2, the published formula (avoid.net/scoring): 38 → 47. Problems weighed by who is responsible: incidents the subject suffered −20, the subject's own conduct −15, concerns that are not fraud −3.2, problems around the subject, caused by others −0.3; legitimacy credit long-running +10; the penalty for incidents it suffered is capped at 20; 1 section(s) set aside until a failed fact-check is resolved. Version history →
Why this score
| Every page starts at | 65 |
| The subject's own conduct | -15 |
| Concerns that are not fraud | -3.2 |
| Incidents it suffered (e.g. hacks) | -20 |
| Problems around it, caused by others | -0.3 |
| Long-running | +10 |
| Sum | 37 |
- The penalty for incidents it suffered is capped at 20 points.
- 1 section set aside: the claims did not hold up in a fact-check, pending correction.
Score: 47/100 (kept between 0 and 100)
How scoring works →Summary
BlockFi was a cryptocurrency lending platform founded in 2017 by Zac Prince and Flori Marquez, once valued at $3 billion. The company faced a $100 million SEC and state regulator settlement in February 2022 for offering unregistered securities, then collapsed in November 2022 following the implosion of FTX, which had extended BlockFi a $400 million credit facility. After filing Chapter 11 bankruptcy, BlockFi achieved a notable outcome: all creditors received 100% recovery of allowed claims, funded largely by a $874.5 million settlement with FTX/Alameda Research.
Connected Entities
5 entities · 59 linked investigations- Three Arrows Capital→mentioned with→Celsius Network(80%)
- Alameda Research→mentioned with→Sam Bankman-Fried(80%)
- BlockFi→mentioned with→Sam Bankman-Fried(80%)
- BlockFi→mentioned with→Three Arrows Capital(80%)
- BlockFi→mentioned with→Alameda Research(80%)
- Celsius Network→mentioned with→Three Arrows Capital(80%)
- Sam Bankman-Fried→mentioned with→Alameda Research(80%)
- BlockFi→mentioned with→Celsius Network(75%)
Connected Through
5 shared actors · 78 investigationsDistinct actors this investigation shares with others — holders, traders, and named parties. Shared infrastructure (exchanges, pools) is excluded.
- □Alameda Researchorganization
- □Three Arrows Capitalorganization
- □Sam Bankman-Friedorganization
- □Celsius Networkorganization
Timeline(16 events)
11 March 2021
BlockFi closes $350 million Series D funding round at a $3 billion valuation.
TechCrunch14 February 2022
SEC and 32 state regulators announce $100 million settlement with BlockFi over unregistered BlockFi Interest Accounts (BIAs) and material misstatements.
SEC.gov16 June 2022
BlockFi confirms it liquidated Three Arrows Capital positions after 3AC failed to meet margin call obligations.
CoinDeskJuly 2022
FTX (West Realm Shires Inc.) extends $400 million revolving credit facility to BlockFi and signs option to acquire BlockFi for up to $240 million.
TechCrunch10 November 2022
BlockFi suspends withdrawals and platform activity following FTX's collapse, citing significant exposure to FTX and its affiliates.
NPR11 November 2022
FTX files for Chapter 11 bankruptcy, triggering BlockFi's liquidity crisis.
Bloomberg28 November 2022
BlockFi files Chapter 11 bankruptcy in U.S. Bankruptcy Court, District of New Jersey, listing over 100,000 creditors.
NPR10 March 2023
Silicon Valley Bank is seized by California regulators; BlockFi disclosed as having $227 million in uninsured MMMF funds at SVB.
The Block3 October 2023
U.S. Bankruptcy Court, District of New Jersey, confirms BlockFi's reorganization plan.
Official Committee of Unsecured Creditors of BlockFi24 October 2023
BlockFi's bankruptcy plan becomes effective; company begins winding down operations.
The BlockFebruary 2024
BlockFi begins initial Convenience Class distributions (50% cash payout for claims under $3,000).
Official Committee of Unsecured Creditors of BlockFiMarch 2024
BlockFi plan administrator settles with FTX estate, securing $874.5 million in claims against FTX and Alameda Research.
Haynes Boone10 July 2024
Sale of FTX claims to third-party buyer closes at a premium above face value, generating funds sufficient for full creditor recovery.
The Block6 September 2024
Plan administrator announces 100% recovery of all allowed claims for BlockFi creditors, with total distributions exceeding $1 billion.
PR NewswireDecision Log
- slot 461965871 · hash 3HY2eA6X4Znre2PwmJSWyB4X1xTPD4CEgRDeDaV2gFh1
- slot 459446193 · hash BjECEGJ5XxcpmdhFW7k4DLSBcn8EZy8xSSQYdUJQB2HT
- slot 423161855 · hash 6chhDZHEwVyYMAyNRqoJvQfVrB2tATJ8qEsHSPAaQBE8
- slot 419605615 · hash DjfXzaEotxrSGBbkv2LgYtD7qZKat4rSbYn49SkShTWD
- slot 419605609 · hash 9Ys9zgNuAURhw3Uu1fmcCnNMUDcVF7q2puo1zJRTnXoL
This investigation is cryptographically anchored to the Solana blockchain (5 decisions). 17 of 20 cited source URLs have an Internet Archive snapshot.
model: claude-code-investigator
generated: 5/8/2026, 2:30:44 AM
last updated: 10/27/2026, 6:05:46 AM
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