BlockFi has to update wallet, platform before distributing funds News ▸ US ▸ Bankruptcy
BlockFi has to update wallet, platform before distributing funds
The company said it plans to complete the necessary upgrades this summer.
1 min read
Updated: Jun. 12, 2023 at 10:36 pm UTC
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Bankrupt lending platform BlockFi said in a June 12 email that it must perform updates before it begins to distribute funds to users.
Upgrades coming in summer
BlockFi said that a June 9 court order determined that users own the assets in their wallet accounts and that the company can allow certain withdrawals.
However, the company also said that it needs to perform updates before allowing withdrawals. Specifically, it said that it must upgrade its UI to take into account transactions and assets at the time of its service pause in November 2022.
BlockFi also said that it must add “new product functionality” to its platform but did not state what these features will include.
BlockFi said it is necessary to perform these updates to conduct withdrawals “accurately and safely.” It said that the upgrades would be completed over the summer and said that it would be positioned to begin distributing funds after that point.
The June 9 court order explicitly allows for such upgrades.
External wallets required
BlockFi said that it intends to support crypto — not cash — withdrawals. It additionally said that groups of users would be able to perform withdrawals in turns and advised users to set up external addresses for withdrawals as they wait for the process to begin.
BlockFi’s bankruptcy case has been ongoing since November 2022. The company owes between $1 billion and $10 billion to its creditors.
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Posted In: US, Bankruptcy
Author 
Mike Dalton
Before transitioning to crypto writing in 2018, Mike studied library and information sciences. Currently, he resides on Canada's West Coast.
Editor Editor 
Zaeem Shoaib Zuberi
Zaeem, an editor fascinated by business, finance, DeFi, and cryptocurrencies, holds a business and finance degree. His 14-year career in financial journalism spans sectors like banking, finance, insurance, and tech.
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BlockFi
BlockFi is a defunct cryptocurrency lender company which is currently in bankruptcy proceedings.