On Oct. 24, 2022, the Bankruptcy Court for the District of New Jersey confirmed BlockFi’s Chapter 11 plan, ending its case prior to the one-year mark and paving the way for distributions to begin in early 2024.

BlockFi’s main business model was acting, essentially, as a shadow bank. BlockFi took demand deposits from users and paid interest on those deposits, loaned those deposits to other parties at higher interest rates, and pocketed the difference: a classic banking model.