BlockFi files motion to return frozen crypto to wallet users

Bankrupt crypto lending level BlockFi has filed a question requesting authorization from the United States Bankruptcy Court to let its users to retreat integer assets presently locked up successful BlockFi Wallets. 

In a question filed connected Dec .19 with the U.S. Bankruptcy Court successful the District of New Jersey, the lender asked the tribunal for authorization to grant lawsuit withdrawals from wallet accounts arsenic of the platform’s intermission connected Nov. 10.

As portion of our presumption successful Court, we besides expressed our volition to petition support from the Court to reconstruct withdrawal activities for BlockFi Wallet accounts.

— BlockFi (@BlockFi) November 29, 2022

The tribunal documents besides petition support to update the idiosyncratic interface to decently bespeak transactions arsenic of the platform’s pause.

In a wide shared email sent to affected users, BlockFi called the question an “important measurement toward our extremity of returning assets to clients done our section 11 cases," adding

“It is our content that clients unambiguously ain the integer assets successful their BlockFi Wallet Accounts.”

According to BlockFi, this question volition not interaction withdrawals oregon transfers from BlockFi Interest Accounts, which stay paused astatine this time.

The lending level has besides signaled intentions to question “similar alleviation from the Supreme Court of Bermuda with respect to BlockFi Wallet Accounts held astatine BlockFi International Ltd.”

BlockFi International is simply a subsidiary of the institution based successful Bermuda which runs its non-U.S. operations.

Crypto blogger Tiffany Fong shared the connection sent to her by BlockFi connected Dec. 19, commenting that the embattled steadfast appears to beryllium moving overmuch faster than Celsius, which filed for bankruptcy implicit five months agone successful July as opposed to BlockFi's bankruptcy filing successful November. 

WOW, @BlockFi has already filed a question requesting lawsuit withdrawals for assets held successful BlockFi Wallet Accounts. S/O to BlockFi for moving exponentially much rapidly than @CelsiusNetwork successful Ch 11. pic.twitter.com/JvtWzMklNA

— Tiffany Fong (@TiffanyFong_) December 20, 2022

According to the tribunal documents, a proceeding to determine if the question volition beryllium granted is scheduled for Jan. 9, 2023.

While a abstracted proceeding regarding wallet accounts held astatine BlockFi International Ltd is scheduled to spell earlier the Supreme Court of Bermuda connected Jan. 13, 2023.

Related: BlockFi sues FTX’s Bankman-Fried implicit shares successful Robinhood

BlockFi halted lawsuit withdrawals and requested clients not to deposit to BlockFi wallets oregon Interest Accounts connected Nov. 11, citing a deficiency of clarity astir FTX.

By Nov. 28, BlockFi filed for Chapter 11 bankruptcy successful the United States Bankruptcy Court for the District of New Jersey for the institution and its 8 subsidiaries. BlockFi International filed for bankruptcy with the Supreme Court of Bermuda connected the aforesaid day.