The crypto lending company BlockFi recently filed a request in a U.S. court to allow customers to make withdrawals. This request comes after the company recently declared bankruptcy, which caused customers to worry about whether they would be able to access their funds. BlockFi claims that they are in the process of developing a plan to allow customers to make withdrawals as soon as possible, and the court request is a part of that process. The court has not yet made a decision, but customers are hopeful that they will be able to access their funds soon.
BlockFi, one of the first crypto exchanges to be affected by the collapse of FTX in early November, has filed for Chapter 11 bankruptcy protection on November 28, less than a month after suspending all withdrawals from its platform. This is a major setback for the crypto industry and a cautionary tale of the risks involved. BlockFi’s closure is a reminder that investors should always be mindful of the risks associated with digital currency, as the volatile nature of the market can cause sudden and severe losses.
Blocki sent an email to inform its users that they filed a motion requesting authority from the U.S. Bankruptcy Court to allow clients to withdraw their digital assets that are held in their BlockFi Wallet Account:
The email also added BlockFi will be seeking similar relief with the Supreme Court of Bermuda with respect to wallets held at BlockFi International Ltd.