BlockFi, which sought bankruptcy protection, is seeking for court approval to allow its customers to withdraw digital assets from accounts outside of its ‘BlockFi Interest Accounts,’ which compensates investors for lending their cryptocurrency back to the business.
BlockFi filed a motion on December 19 with the U.S. Bankruptcy Court in the District of New Jersey asking for permission to let its clients access the assets held in their wallets since November 10, when it paused withdrawals.
The BlockFi Interest Accounts remain suspended at this moment. Therefore, this motion does not affect withdrawals or transfers from those accounts.
The crypto lender is also seeking “similar relief from the Supreme Court of Bermuda with respect to BlockFi Wallet Accounts held at BlockFi International Ltd.”
In a blog featured on BlockFi, the firm stated, “While filing this motion is an initial step, we will continue to work towards solutions that maximize value for all clients and other stakeholders and will share updates as quickly as practicable.”
The court documents also request permission to update the user interface to accurately reflect transactions as of the platform’s pause.
The firm is looking forward to discussing this motion with the U.S. Bankruptcy Court and key parties concerned with it. It wants to quickly move forward with a path that returns Wallet Accounts assets to clients.
The U.S. Bankruptcy Court hearing on the motion is set for January 9, at 10am ET. They also expects similar results for BlockFi International Ltd from its court hearing in Bermuda, currently scheduled for January 13, at 10:30am AST and then scheduled for a full hearing after that on a date to be fixed.