BlockFi Seeks Court’s Green Light to Return Frozen Cryptos to Customers
The embattled crypto lender BlockFi confirms seeking the court’s green light for customers to withdraw crypto assets in its wallets. The submission before the US bankruptcy court revealed BlockFi’s motion on December 19 sought authority for customers to resume withdrawals of their digital assets trapped in its wallets.
Honoring Customers’ Sovereignty Rights to Digital Assets
The New Jersey District court filing portrayed the crypto lender’s willingness to honor customers’ withdrawals for their digital wealth frozen in its wallets since November 10. Besides, the bankrupt crypto lender seeks the court’s authority to upgrade the user interfaces to reflect the accurate account when it suspends transactions.
BlockFi disclosed to the affected clients filing the motion it considered an essential milestone in its Chapter 11 proceedings towards unfreezing the withdrawal of clients’ assets. The email echoed the motion filed in the court affirming BlockFi’s belief that clients have sovereignty right to their digital assets held within the wallet accounts.
The lender clarified that the December 19 motion does not seek to restore transfers and withdrawals of digital wealth locked within the BlockFi Interest Accounts. It added that such would remain paused.
Quicker Action by BlocFi Defies Industry Trend
The crypto lender’s email to its users revealed similar relief through a motion filed before the Bermuda Supreme Court to restore withdrawals for assets held within wallets run by its subsidiary BlockFi International Ltd. The filing confirmed via the lender’s Twitter indicated that the relief sought will grant access to wallets for non-US operations overseen by the Bermuda-based BlocFi International.
The announcement by BlockFi was lauded by popular crypto blogger – Tiffany Fong, who confirmed receiving the December 19 notification from BlockFi. Unlike Celsius Network, Fong praised the embattled crypto lender for expediting the return of the frozen assets.
Hearing Scheduled for Early January
Fong observed that BlockFi cited opaqueness on FTX to suspend withdrawals and deposits. She noted that BlockFi sought Chapter 11 bankruptcy protection on November 28 alongside eight subsidiaries. Hours later, Bermuda-based BlockFi International announced similar relief before the Supreme Court.
The crypto blogger’s reference to the events prompted criticism of nonaction from Celsius Network despite filing for bankruptcy four months earlier than BlockFi.
Elsewhere, the BlockFi confirmed the New Jersey Court scheduled the hearings for January 9, while the BlockFi International Ltd motion proceedings will take place on January 13 before the Supreme Court of Bermuda.
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