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BlockFi urges court to approve user’s withdrawals

BlockFi management's attorney tells court: no crypto has been withdrawn since October

TL;DR Breakdown

  • BlockFi petitions court to green light withdrawals
  • The company filed the same petition in Bermuda
  • BlockFi will know its fate by January

BlockFi has sent a petition to the Bankruptcy Court to give the go-ahead for clients with accounts on the platform to withdraw their digital assets. According to the petition, the digital assets are presently tied down in their accounts. The lending platform wants the green light from the court for them to retrieve it. This request will not affect the interest accounts on the BlockFi platform, which the court has ordered a freeze on transactions.

The company filed the same petition in Bermuda

In its statement to its clients, the firm mentioned that the move was one of the few steps the company decided to take to return digital assets to its clients. The lending platform filed for chapter 11 bankruptcy in November after the FTX debacle. The same petition has also been submitted to the Supreme Court in Bermuda about the accounts on the platform of the sister arm of the company.

Asides from these requests, the court also prayed the court to allow backroom engineers to work on the platform’s interface. According to the filing, the update will help them show their clients their original asset balance during this period. The company claims this will help them maintain honesty throughout this trying period.

BlockFi will know its fate by January

The users of BlockFi will have to keep the faith as the court is set to deliver a verdict on the petition by January 9 next year. The petition submitted in Bermuda will also be heard on January 13, with a verdict delivered to that effect. BlockFi is just one company currently affected by the FTX issue. One synonymous problem with the companies involved is that their users cannot withdraw their assets.

Celsius was mandated by a court of law to refund its users with funds going to the tune of $44 million in digital assets. The funds covered were the ones that were separate from its interest-themed lending program. Presently, Celsius users are at a loss on whether to move on from the funds on their interest accounts. What will happen to the over $210 million held on the platform remains to be determined.

The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

Owotunse Adebayo

Owotunse Adebayo

Adebayo loves to keep tab of exciting projects in the blockchain space. He is a seasoned writer who has written tons of articles about cryptocurrencies and blockchain.

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