Sunday, July 14, 2024

BlockFi Petitions To Restore Wallet Users’ Frozen Crypto

The cryptocurrency lending platform BlockFi has submitted a request to a bankruptcy court in the United States for permission to recover customers’ crypto assets that were stored in BlockFi wallets.

The defunct cryptocurrency lending platform BlockFi has submitted a petition to a bankruptcy court in the United States, demanding permission to enable its customers to withdraw digital assets that are now stored in wallets provided by BlockFi.

The lender sought the court for power to recognize customer withdrawals from wallet accounts that have been blocked on the platform since November 10. The application was filed on December 19 with the United States Bankruptcy Court for the District of New Jersey.

Additionally, authorization is requested in the court proceedings to update the user interface in order to accurately represent transactions since the stoppage in platform operations.

BlockFi referred to the move as a “essential step toward our aim of recovering funds to customers via our chapter 11 proceedings” in an email that was addressed to users who were impacted and extensively circulated.

According to BlockFi, the stop that has been placed on the processing of withdrawals and transfers from BlockFi Interest Accounts will not be lifted as a result of this action.

The online lending platform has also made it clear that it intends to seek similar remedies from the Supreme Court of Bermuda in relation to BlockFi Wallet Accounts that are stored at BlockFi International Ltd.

According to the paperwork filed with the court, there will be a hearing on January 9 to determine whether or not the application will be granted.

On January 13, the Supreme Court of Bermuda is going to hold a separate hearing on wallet accounts that are maintained at BlockFi International Ltd.

On November 11, BlockFi recommended that customers refrain from depositing funds into their BlockFi wallets or Interest Accounts, citing a lack of clarity on FTX as the reason for the request.

On November 28th, BlockFi submitted their application for Chapter 11 bankruptcy, which included all eight of its companies.

On the very same day, a petition for bankruptcy was submitted to the Supreme Court of Bermuda by BlockFi International.


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