BlockFi Now Empowers Clients With Digital Asset Withdrawals

Key Points:

• BlockFi allows qualified clients to withdraw digital assets from Wallet accounts backed by court approval.
• The company’s Chapter 11 strategy involves an online vote portal to maximize compensation.
• Amidst its financial turmoil, BlockFi prioritizes customer interests by swiftly returning funds and safeguarding assets.

BlockFi, the bankrupt cryptocurrency lending platform, has taken a significant step toward helping its qualified customers. In accordance with court approval, the company has initiated withdrawals of digital assets from BlockFi Wallet accounts.

This move marks a notable advancement in the firm’s efforts to return funds to its clients. This process focuses on ensuring swift, precise, and secure distributions.

Eligible customers are urged to check their email or the BlockFi app to determine if they can avail of this option. The company anticipates expanding eligibility as the Court proceedings progress, potentially benefiting international clients.

In previous months, BlockFi outlined its intent to reintroduce customer withdrawals over the summer. The initial phase enabled customers to withdraw digital assets from wallet accounts not subject to potential preference claims.

Recently, it commenced the opinion-gathering phase for its Chapter 11 bankruptcy plan. This phase facilitates voting through the online Vote Portal, with hard-copy votes being deemed ineligible.

Eligible creditors are encouraged to participate in this process. The company asserts that this approach is the quickest route for customers to receive optimal compensation.

BlockFi plans to reclaim funds from various inactive firms, including Alameda Research, FTX, Three Arrows Capital, Emergent, and Core Scientific, upon securing approval for the bankruptcy plan.

The company’s latest move to enable digital asset withdrawals underscores its commitment to navigating bankruptcy while prioritizing its clients’ interests. As the company strives to regain stability, it aims to balance the needs of its customers with the challenges of its financial situation.

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