BlockFi one step closer to opening withdrawals, but not for majority of users BlockFi one step closer to opening withdrawals, but not for majority of users
The company intends to gain court authorization and allow users to retrieve funds.
1 min read
Updated: Dec. 20, 2022 at 10:32 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Lending firm BlockFi has filed a motion that could allow customers to withdraw funds from their wallets, according to an email that was leaked on Dec. 19.
That message indicates that BlockFi submitted its filing to the U.S. Bankruptcy Court in order to gain authorization which will allow customers to withdraw funds from their BlockFi Wallet Accounts. BlockFi is also seeking relief from the Supreme Court of Bermuda so as to allow customers to withdraw assets from its international platform.
BlockFi said that it believes that its clients “unambiguously own the digital assets” in their wallet accounts. It further noted that seeking authorization through the above legal process is a “necessary step towards ensuring all clients are treated fairly,” adding that it aims to ensure that it can honor all requests properly.
BlockFi clarified that the motion does not concern withdrawals and transfers from Interest Accounts, which are separate from main accounts and remain frozen.
The company says that its request will likely be heard in the United States during its upcoming Jan. 9 hearing and in Bermuda during its Jan. 13 hearing.
BlockFi first paused withdrawals on Nov. 10, citing the collapse of FTX and uncertainty around the situation as the reason for its decision. The firm filed for bankruptcy weeks later on Nov. 28. The company’s first hearing began soon after that on Nov. 29.
Today’s development means that BlockFi customers may regain access to their funds fairly soon — and without having to endure the entire restructuring process.
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Posted In: Lending
Author 
Mike Dalton
Before transitioning to crypto writing in 2018, Mike studied library and information sciences. Currently, he resides on Canada's West Coast.
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BlockFi
BlockFi is a defunct cryptocurrency lender company which is currently in bankruptcy proceedings.