BlockFi recently released a movement requesting the US Bankruptcy Court to allow the users to withdraw digital assets locked in wallet accounts on the platform. The bankrupt crypto lending platform also requested permission to update its user interface to properly reflect transactions from the platform’s discontinuation.
A large number of users shared the emails they received from BlockFi on social media platforms such as Twitter. Notably, the company labeled the motion a “significant step” toward its goal of returning assets to customers through its Chapter 11 cases. The mail further claimed,
“It is our belief that customers have unequivocal ownership of the digital assets in their BlockFi Wallet accounts.“
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Movement does not affect interest air conditioning transfers
BlockFi added that it will seek similar guidance from the Supreme Court of Bermuda regarding wallet accounts held with BlockFi International Ltd. are held. BlockFi International, in turn, is a subsidiary of the company based in Bermuda. It manages the platform’s non-US operations.
BlockFi further clarified,
“This motion will not affect withdrawals or transfers from BlockFi interest accounts, which remain paused at this time.”
Towards the end of last month, cryptocurrency lender BlockFi and eight of its affiliates officially filed for Chapter 11 bankruptcy protection. The said measure was taken in the hope of saving her business through legal proceedings.
Further according to the bankruptcy filing details, the beleaguered cryptocurrency lender has more than 100,000 creditors. The details also revealed that liabilities ranged from $1 billion to $10 billion.
Read more: BlockFi liabilities are in the $1 billion to $10 billion range, bankruptcy filing reveals
A hearing to decide whether or not to grant the final motion is scheduled for January 9, 2023. At the same time, a separate hearing related to wallet accounts at BlockFi International Ltd. will be held on January 13, 2023. be heard by the Supreme Court of Bermuda. .