BlockFi, a cryptocurrency lender, has emerged from bankruptcy nearly 11 months after being affected by the instability in the cryptocurrency industry caused by the collapse of FTX.

In November of last year, BlockFi mentioned its loans to Alameda, FTX’s sister company, as one of the contributing factors to the crisis it faced. The company has now announced that it will begin implementing its bankruptcy plan, which includes the recovery of assets it believes are owed to it by FTX, Three Arrows Capital, and other entities.

However, the process of recovering assets may face challenges as both FTX and Three Arrows Capital are currently going through their own bankruptcy proceedings.

BlockFi has also stated that withdrawals are currently available to the majority of its Wallet customers. For BlockFi Interest Account and Retail Loan holders, repayments will be made over the coming months, but the amounts received may vary depending on the outcome of the FTX bankruptcy.

During the pandemic, crypto lenders, who serve as the de facto banks of the crypto world, experienced significant growth and attracted retail customers with high interest rates on their crypto deposits. However, unlike traditional lenders, these companies are not required to hold capital or liquidity buffers. As a result, when a shortage of collateral arose, both the lenders and their customers suffered substantial losses.