Trying To Resume Withdrawals For Certain Users

December 20, 2022 Story: Divya Sinha

Bankrupt crypto lender BlockFi is looking to resume payments to users whose crypto is locked in their wallet accounts.

On December 19, BlockFi filed a motion with the US Bankruptcy Court in the District of New Jersey and the hearing is scheduled to be on January 9 at 10 a.m. ET.

This is to authorize the debtor to redeem the withdrawal of the wallet account, update the user interface to reflect the transaction and perform regular account reconciliation.

BlockFi mentioned in its filing that its Wallet Terms of Service are clear.

Another hearing will be held on January 13th for BlockFi International Ltd.

As reported by a Twitter user, BlockFi customers were also contacted about the company's intention to resume withdrawals for wallet users.

BlockFi suspended withdrawals as concerns over FTX debacle and on November 28, the lender filed for Chapter 11 bankruptcy protection.