BlockFi Petitions To Restore Wallet Users’ Frozen Crypto


BlockFi, a cryptocurrency lending platform, has asked a bankruptcy court in the United States to allow customers to recover crypto assets stored in BlockFi wallets.

BlockFi, an ex-crypto lending platform, filed a petition in bankruptcy court in the United States to allow its customers to withdraw digital funds that were stored in BlockFi-provided wallets.

The lender requested the court to grant the power to the court to recognize customer withdrawals from wallet account that had been blocked since November 10. The United States Bankruptcy Court in the District of New Jersey filed the application on December 19.

A court proceeding is also required to authorize the updating of the user interface, in order to accurately record transactions since the platform stopped operations.

BlockFi described the move as an “essential step towards our aim to recover funds to customers through our chapter 11 proceedings”. In an email addressed to affected users, it was widely circulated.

BlockFi says that this action will not lift the ban on processing withdrawals or transfers from BlockFi Interest accounts.

The online lending platform made it clear that they intend to seek similar remedies at the Supreme Court of Bermuda regarding BlockFi Wallet Accounts stored at BlockFi International Ltd.

According to paperwork filed with court, a hearing will be held on January 9th to decide if the application will be granted.

The Supreme Court of Bermuda will hold a separate hearing on January 13th regarding wallet accounts maintained at BlockFi International Ltd.

BlockFi recommended on November 11 that customers stop depositing money into their BlockFi Interest Accounts or wallets. This was because there is not enough clarity. FTX As the reason for the request.

BlockFi filed their Chapter 11 bankruptcy petition on November 28th. This included all eight of the companies it owned.

BlockFi International filed a petition for bankruptcy on the same date to the Supreme Court of Bermuda.

 

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