BlockFi Files Motion to Return Client Assets: What You Need to Know

Bankrupt crypto lender BlockFi is seeking to reopen withdrawals for users who have crypto locked in wallet accounts. The lender filed a motion on Dec. 19 with the U.S. Bankruptcy Court. This comes as a significant development for users who have had their assets frozen since BlockFi halted operations.

Good News for BlockFi Wallet Holders

Bankrupt crypto lending platform BlockFi has filed a motion requesting authority from a United States bankruptcy court to allow its users to withdraw digital assets. This is because Crypto held in BlockFi wallets belongs to customers and the company has “no legal or equitable interest.” in funds that were frozen when the platform halted operations.

In essence, BlockFi, a defunct cryptocurrency lending platform, has submitted a motion asking the United States Bankruptcy Court for permission to permit its users to withdraw digital assets. The move aims to unlock access to crypto assets held in non-interest-bearing BlockFi Wallet accounts.

Court Permission Granted

Bankrupt crypto lender BlockFi received court permission on Thursday to return $297 million (roughly Rs. 2,439 crore) to customers with non-interest-bearing accounts. This signifies a crucial step forward in the bankruptcy proceedings, prioritizing the return of client assets.

What's Next for BlockFi Users?

Bankrupt cryptocurrency lender BlockFi Inc. has asked for bankruptcy court permission to return some customer cryptocurrency held in its wallet accounts. Crypto Lending firm BlockFi has filed a motion requesting authorization from a United States bankruptcy court to enable its users to withdraw frozen crypto assets. Details on the exact process and timeline for withdrawals will be released following court approval. Stay tuned for updates as the situation develops.