(Reuters) -Cryptocurrency lender BlockFi emerged from bankruptcy on Tuesday, clearing the way to repay its creditors 11 months after it went belly up.

The development closes one of many bankruptcies the crypto industry saw since last year, in what has been one of the most challenging periods for the sector.

In its bankruptcy filing in November last year, BlockFi had cited its loans to FTX's sister firm Alameda as one of the reasons for the crisis it was facing.

On Tuesday, the company said it would officially begin enacting the actions detailed in its bankruptcy plan, like recovering assets it believes are owed to it by FTX, Three Arrows Capital and others.

It will also continue distributing digital assets back to clients, it said.

(Reporting by Niket Nishant in Bengaluru; Editing by Shailesh Kuber and Anil D'Silva)