Crypto Lender BlockFi Files a Petition to Resume Withdrawals
Cryptocurrency lending platform BlockFi has just filed a petition with the Bankruptcy Court of the District of New Jersey to open the withdrawal of user funds from wallet accounts.
The company has also asked for permission to “reconcile and adjust” client interfaces to bring digital asset accounting in order. BlockFi has attributed this to attempts to make transactions after it ceased operations in November.
BlockFi’s lawyers argued the petition with the user agreements of the platform’s custodial service. According to them, the assets in the wallet are the full property of the clients.
BlockFi suspended withdrawals on November 11, citing the FTX crisis and Alameda Research. A few days earlier, the founder of the platform assured that all the company’s products are workable, and the business does not depend on the firms of Sam Bankman-Fried.
