US Customers Regain Access to BlockFi Accounts Following Bankruptcy Court Directive
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Cryptocurrency Lending Firm BlockFi Restores Account Access for US Customers
Several customers based in the United States who use the cryptocurrency lending services of BlockFi have reported being able to access their accounts. This comes after the US Bankruptcy Court for the District of New Jersey issued a directive on August 16.
In an update on August 17, BlockFi announced that it had begun the process of allowing eligible US users to withdraw their wallets, following the guidance of the bankruptcy court. These withdrawals were initially suspended nine months ago.
However, international users will have to wait longer as the legal process is still ongoing, and the situation may change.
BlockFi Lifts Suspension in Compliance with Court Order
BlockFi stated that their decision to lift the suspension aligns with the court’s wallet order. This order identifies eligible customers as US-based BlockFi Wallet account holders who meet specific criteria. These criteria include not withdrawing or transferring more than $7,575 in digital assets from their BlockFi Interest Account (BIA) or BlockFi Private Client (BPC) since November 2, 2022. Additionally, clients should not only hold trading assets in their wallets during the platform downtime on November 10, 2022, at 8:15 PM ET.
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BlockFi Prioritizes Distributions
BlockFi emphasized that facilitating distributions is their top priority. Customers were advised to check their emails or the BlockFi app to determine their eligibility for the restoration of account access.
BlockFi’s Chapter 11 Bankruptcy Filing
In November 2022, BlockFi filed for Chapter 11 bankruptcy protection. The filing revealed that the company has over 100,000 creditors, and its liabilities and assets are estimated to be between $1 billion and $10 billion. This filing followed similar high-profile submissions by FTX, Celsius Network, and Voyager Digital.
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