BlockFi Trying To Return Frozen Fund To Wallet Users

BlockFi, a collapsed cryptocurrency lending platform, has submitted a motion asking a bankruptcy court in the United States to grant permission for its users to withdraw digital assets that are currently locked up in BlockFi wallets.

The lender requested permission from the bankruptcy court to recognize client withdrawals from wallet accounts that have been suspended on the platform since November 10 in a motion submitted on December 19 to the U.S. Bankruptcy Court in the District of New Jersey.

The company appears to be trying to get its customers back, it said in an email shared on Twitter users:

Additionally, approval is sought in the court proceedings so that the user interface can be updated to accurately display transactions following the platform’s stop.

The crypto lender claims that this action won’t have an influence on transfers or withdrawals from BlockFi Interest Accounts, which are now stopped. A division of the Bermuda-based company that manages its non-American activities is called BlockFi International.

A hearing to determine whether the request will be granted is planned on January 9, according to court records. On January 13, the Supreme Court of Bermuda will hear a different case involving wallet accounts maintained at BlockFi International Ltd.

Additionally, the company has hinted that it intends to ask Bermuda’s Supreme Court for similar relief in relation to BlockFi Wallet Accounts kept at BlockFi International Ltd.

On November 11, the cryptocurrency lender froze customer withdrawals and asked consumers to refrain from depositing to Interest Accounts or BlockFi wallets due to a lack of clarity around FTX.

The company and its eight subsidiaries filed for Chapter 11 bankruptcy on November 28. On that same day, BlockFi International filed for bankruptcy with the Supreme Court of Bermuda.

The wave of influence of FTX still covers the market to this day. As Coincu reported, DEX protocol for the Aptos ecosystem due to the effects of the FTX crash, the loss of project money that were in FTX’s control, and the loss of Alameda as the team’s market maker, Mojito Markets declared that the whole team has optional to halt protocol development.

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Harold

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