Crypto lender BlockFi has filed a lawsuit in US economic court for the right to return the crypto users held in BlockFi wallets.
Bankrupt crypto-lending firm BlockFi has filed a petition seeking permission from a US bankruptcy court to allow its users to withdraw digital assets currently locked in BlockFi wallets.
In a complaint filed in December On November 19 in the United States Bankruptcy Court for the District of New Jersey, the lender filed for court approval to honor customers withdrawing money from wallet accounts that have been frozen on the platform since Nov. 10. The court documents also require permission to update the user interface to better reflect transactions from the platform’s interface.
In a widely shared email sent to affected users, BlockFi called the move “an important step toward our goal of recovering assets from Chapter 11,” adding.
“We are confident that customers have digital assets in their BlockFi Wallet accounts without any compromise.”
According to BlockFi, the move will not affect withdrawals or transfers to BlockFi Preferred Accounts, which remain on hiatus at this time. The lending platform also indicated its intention to seek “similar relief from the Supreme Court of Bermuda in relation to BlockFi’s wallet account with BlockFi International Ltd.”
BlockFi International is a subsidiary of the Bermuda company, which handles its operations outside the US.
Crypto blogger Tiffany Fong shared a message sent to her by BlockFi on December 21. 19, saying that the company has problems that seem to be running faster than Celsius, which filed for bankruptcy more than five months ago, compared to BlockFi’s bankruptcy filing in November.
According to court documents, a hearing to decide whether the petition will be accepted is set for January 1. 9.
A separate hearing regarding the wallet account at BlockFi International Ltd is scheduled in the Supreme Court of Bermuda on January 1. 13.
BlockFi stopped withdrawing customers and told customers not to deposit money into BlockFi wallets or interest-bearing accounts on November 1. 11, talks about the lack of understanding in the FTX environment.
By Nov. 28th, BlockFi filed for Chapter 11 bankruptcy, for the company and its eight subsidiaries. BlockFi International filed for bankruptcy in the Supreme Court of Bermuda on the same day.
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