BlockFi Users Set to Reclaim $300M Held in Custodial Accounts, Judge Decides
Good news for BlockFi users! A New Jersey judge has decided that BlockFi's custodial wallet users are entitled to receive back nearly $300 million worth of assets that were frozen after the crypto lender filed for bankruptcy. On Thursday, a New Jersey judge ruled that BlockFi custodial wallet users can be returned nearly $300 million, as a New Jersey judge ruled on Thursday May 11 that assets sitting in the wallets belong to clients.
This landmark ruling means that BlockFi customers can be refunded early $300 million, after a bankruptcy judge said assets in custodial wallets belong to clients, not the troubled company. A bankruptcy judge has ruled in favor of returning $300 million to the custodial account holders of BlockFi. The judge denied the crypto lender’s customers from laying claim to an additional amount. This decision offers a significant step forward for those impacted by BlockFi's bankruptcy proceedings.
According to a Coindesk report, Based on a May 11th ruling, BlockFi custody wallet users may receive up to $300 million as a refund. This ruling...clarifies that the funds held in custodial accounts are rightfully the property of the users. BlockFi custodial wallet users could receive a massive $300 million repayment from the bankrupt digital asset lender.
Users with coins on custodial accounts, not receiving any yield from their crypto, can benefit from the $300 million in assets stock on the crypto lending platform and could recover a portion of their holdings. This provides a much-needed lifeline for many who had their assets locked up during BlockFi's financial difficulties.
This ruling is a positive development and represents a significant win for BlockFi's custodial wallet users, paving the way for the return of a substantial portion of their assets.