BlockFi Requests Court To Allow Holders Of Wallet Accounts To Withdraw Their Assets

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Flori Marquez & Zac Prince; Photo Source: TechCrunch

BlockFi filed a motion with the Bankruptcy Court in New Jersey to enable withdrawals for Wallet Account holders.

In its latest court filing, BlockFi asserted that the crypto assets held within Wallet Accounts are to remain with its clients “at all times.” It claimed that allowing these users to withdraw their frozen assets will ensure all clients are treated fairly, adding,

“It is our belief that clients unambiguously own the digital assets in their BlockFi Wallet Accounts.”

According to its email, BlockFi will “seek similar relief from the Supreme Court of Bermuda” for Wallet Accounts held with BlockFi International Ltd. BlockFi clarified that the motion does not include provisions to allow holders of yield-bearing Interest Accounts to withdraw their assets.

“We are looking forward to discussing this motion with the U.S. Bankruptcy Court and key parties in our cases, and expeditiously moving towards a path that returns Wallet Accounts assets to clients.”

BlockFi also stated that many users tried to withdraw their assets after it had limited platform activity. The firm noted that none of the transactions took place, with its UI incorrectly reflecting the completion of the attempted transactions. Therefore, the crypto lender requested the Court to authorize it to update the UI to display the correct balance of its users. 



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The crypto lender also filed another motion to redact the names of its transactional parties. BlockFi claimed that doing so will help prevent disruptions in its sale process.

The court hearings for both motions are scheduled for January 9, 2023. Meanwhile, the hearing regarding the Wallet Accounts held with BlockFi International Ltd will occur on January 13.  

Written by
Ayush Pande

BlockFi filed a motion with the Bankruptcy Court in New Jersey to enable withdrawals for Wallet Account holders.

In its latest court filing, BlockFi asserted that the crypto assets held within Wallet Accounts are to remain with its clients “at all times.” It claimed that allowing these users to withdraw their frozen assets will ensure all clients are treated fairly, adding,

“It is our belief that clients unambiguously own the digital assets in their BlockFi Wallet Accounts.”

According to its email, BlockFi will “seek similar relief from the Supreme Court of Bermuda” for Wallet Accounts held with BlockFi International Ltd. BlockFi clarified that the motion does not include provisions to allow holders of yield-bearing Interest Accounts to withdraw their assets.

“We are looking forward to discussing this motion with the U.S. Bankruptcy Court and key parties in our cases, and expeditiously moving towards a path that returns Wallet Accounts assets to clients.”

BlockFi also stated that many users tried to withdraw their assets after it had limited platform activity. The firm noted that none of the transactions took place, with its UI incorrectly reflecting the completion of the attempted transactions. Therefore, the crypto lender requested the Court to authorize it to update the UI to display the correct balance of its users. 



Get Our Free Newsletter

Subscribe to our newsletter to get tips, our favorite services, and the best deals on Bitcompare-approved picks sent to your inbox


The crypto lender also filed another motion to redact the names of its transactional parties. BlockFi claimed that doing so will help prevent disruptions in its sale process.

The court hearings for both motions are scheduled for January 9, 2023. Meanwhile, the hearing regarding the Wallet Accounts held with BlockFi International Ltd will occur on January 13.  

Written by
Ayush Pande