BlockFi initiates motion to return Frozen Cryptocurrency to users

BlockFi, the well-known crypto lending platform, recently announced filing a motion to a US bankruptcy court. The news was a surprise since the platform claimed bankruptcy a while ago.

Filed on December 19, the motion requests authorities to return the crypto assets held within BlockFi wallets to users. The assets have been stuck in the wallets since November 10, troubling users for over a month.

According to the court documents, the platform has also granted permission to update its UI to reflect proper transactions since its pause. BlockFi shared an email with its users, informing them about the motion.

The email stated that the platform had initiated an important step to return clients’ assets via its chapter 11 cases. BlockFi added that the platform believes the clients own every bit of digital assets held in the wallets.

The motion won’t affect transfers or withdrawals from BlockFi Interest Accounts, even though they are also paused. Tiffany Fong, the crypto blogger, turned to Twitter to discuss the development. The blogger shared the email by BlockFi, stating how quick the platform is compared to Celsius, who filed for bankruptcy five months back.

BlockFi is expecting to get a verdict on the motion on January 9. The court will conduct a standalone hearing for the wallet accounts held by BlockFi Int. Ltd. on January 13. The platform restricted users from withdrawing on November 11 and filed for bankruptcy on November 28. Seeing how swift BlockFi has been, users have high hopes of returning their assets quickly.

David Cox

David is a finance graduate and crypto enthusiast. He projects his expertise in subjects like crypto and Blockchain while writing for CryptoNewsZ. Being from Finance background, he efficiently writes Price Analysis. Apart from writing, he actively nurtures hobbies like sports and movies.

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