BlockFi Petitions Bankruptcy Court to Let Clients Withdraw Blocked Assets
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Bankrupt crypto lender BlockFi has petitioned the U.S. Bankruptcy Court to allow clients to withdraw cryptocurrencies that are held in their BlockFi Wallet Accounts.
This request does not impact withdrawals or transfers from BlockFi Interest Accounts, which are set to remain paused at this time, according to the statement.
The lender, which filed for Chapter 11 bankruptcy protection in late November, citing FTX contagion, called the move an “important step toward our goal of returning assets to clients through our chapter 11 cases” in a statement sent to users.
The firm made a similar claim to the Supreme Court of Bermuda with respect to BlockFi Wallet Accounts held by BlockFi International Ltd, the firm’s international counterpart.