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Crypto Lender BlockFi Seeks to Return Frozen Assets to Wallet Users: What Clients Need to Know

Defunct cryptocurrency lending platform BlockFi has filed a petition asking a US bankruptcy court to allow its users to withdraw digital assets that are currently locked away in his wallets.

The lender has sought permission to recognize customer withdrawals from wallet accounts that have been suspended on the platform since November 10 in a motion submitted on December 19 in the United States Bankruptcy Court for the District of New Jersey.

Additionally, approval is sought in legal proceedings so that the user interface can be updated to accurately display transactions after activity on the platform ceases.

Read also : Former British Prime Minister Boris Johnson’s brother resigns from Binance subsidiary

BlockFi said it believes consumers unequivocally own the digital assets in their BlockFi wallet accounts in a widely circulated document. E-mail to affected users, calling the move “an important step toward our goal of returning assets to customers in our Chapter 11 cases.”

Additionally, BlockFi said the motion will not impact transfers or withdrawals from BlockFi interest accounts, which are currently on hiatus.

The crypto lending platform said it intends to seek similar relief from the Supreme Court of Bermuda with respect to BlockFi wallet accounts held at BlockFi International Ltd.

BlockFi’s non-US operations division, BlockFi International, is based in Bermuda.

BlockFi Moves Faster Than Celsius, Says Crypto Blogger

crypto writer Tiffany Fong tweeted an email she received from BlockFi on December 19, stating that the struggling company seemed to be moving much faster than Celsius, who declared bankruptcy more than five months ago, from BlockFi’s bankruptcy filing in November.

A hearing to determine whether the motion will be granted is scheduled for Jan. 9, 2023, according to court records.

On January 13, the Supreme Court of Bermuda will hear another case involving wallet accounts held at BlockFi International.

On November 11, BlockFi asked customers to refrain from depositing funds into BlockFi wallets or interest accounts and froze customer withdrawals, citing a lack of clarity regarding FTX.

BlockFi has filed for Chapter 11 bankruptcy on November 28 in its name and its eight subsidiaries.

On the same day, BlockFi International filed for bankruptcy with the Supreme Court of Bermuda.

Following: FTX Founder Bankman-Fried Returns to Bahamian Jail After Shortened Hearing

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