BlockFi, a recently bankrupt crypto lending platform has submitted a petition to the court requesting it to grant withdrawal access to BlockFi Wallet Accounts owned by BlockFi International Ltd to pay back its customers their cryptocurrencies.
BlockFi filed for Chapter 11 bankruptcy in November after the FTX crash with the claim that it was trying to protect customer funds. Now, the platform wants to return them through its wallet accounts.
This petition in the U.S. Bankruptcy Court in New Jersey District for withdrawal is different from BlockFi Interest Accounts; it won’t have any effect on them. The interest accounts will remain frozen by the court until the court makes the final decision about the case.
The same request has been made to the Supreme Court of Bermuda because its international subsidiary is based in Bermuda.
The court decision about the motion is scheduled to come out on January 9 which will determine where BlockFi will be moving towards. Later on January 13, the court will rule out the decision for its international counterpart.
BlockFi isn’t the only one suffering from insolvency. Many other firms like Gemini are also struggling financially since they were closely linked to the world’s largest centralized exchange.