{"id":71711,"date":"2022-12-20T16:46:02","date_gmt":"2022-12-20T14:46:02","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=71711"},"modified":"2025-09-08T10:39:48","modified_gmt":"2025-09-08T07:39:48","slug":"blockfi-seeks-court-order-to-permit-user-withdrawals-from-wallet-accounts","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/blockfi-seeks-court-order-to-permit-user-withdrawals-from-wallet-accounts\/","title":{"rendered":"BlockFi seeks court order to permit user withdrawals from wallet accounts"},"content":{"rendered":"<p>BlockFi, a crypto-lending platform, filed in the District of New Jersey bankruptcy proceedings a <a href=\"https:\/\/restructuring.ra.kroll.com\/blockfi\/Home-DocketInfo\">\u0445\u043e\u0434\u0430\u0442\u0430\u0439\u0441\u0442\u0432\u043e<\/a> to permit withdrawals by users from wallet accounts.<\/p>\n<p>The firm also sought permission to &#8220;coordinate and adjust&#8221; client interfaces to bring digital-asset accounting in order. It linked this to attempts to execute transactions after operations ceased in November.<\/p>\n<p>The lawyers for the company argued the motion on the custodial service&#8217;s user agreements. According to them, wallet-held assets are the clients&#8217; sole property.<\/p>\n<p>On November 11, BlockFi <a href=\"https:\/\/u1f987.com\/en\/news\/blockfi-halts-withdrawals-amid-ftx-crisis\">suspended withdrawals<\/a>, citing the FTX and Alameda Research crisis. A few days earlier, founder Flori Marquez <a href=\"https:\/\/u1f987.com\/en\/news\/crypto-industry-participants-distance-themselves-from-ftx-and-alameda-research\">assured<\/a> that all of the company&#8217;s products were operational and that the business did not depend on the firms <a href=\"https:\/\/u1f987.com\/en\/news\/who-is-sam-bankman-fried\">Sam Bankman-Fried<\/a>.<\/p>\n<p>On November 28, BlockFi and eight subsidiary entities <a href=\"https:\/\/u1f987.com\/en\/news\/blockfi-files-for-chapter-11-bankruptcy-protection\">filed for bankruptcy<\/a> under Chapter 11 of the US Bankruptcy Code. The FTX Group <a href=\"https:\/\/u1f987.com\/en\/news\/ftx-group-files-for-bankruptcy-sam-bankman-fried-resigns-as-ceo\">took this step<\/a> on November 11.<\/p>\n<p>According to the filing, it has more than 100,000 creditors. The company&#8217;s assets and liabilities are valued at between $1 billion and $10 billion.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;The debtors do not have a legal or equitable interest in the cryptocurrency held in wallet accounts at the time the platform paused operations. Clients should be able to withdraw such assets if they wish,&#8221; BlockFi&#8217;s lawyers said in the motion.<\/p>\n<\/blockquote>\n<p>A hearing on the motion was scheduled for January 9, 2023.<\/p>\n<p>Earlier in December, <a href=\"https:\/\/u1f987.com\/en\/news\/celsius-files-for-bankruptcy-protection\">the bankrupt<\/a> crypto-lending platform Celsius Network <a href=\"https:\/\/u1f987.com\/en\/news\/bloomberg-celsius-to-return-about-43-87-million-in-crypto-to-custody-account-holders\">secured permission<\/a> to return $43.87 million in digital assets to custodial account holders. The firm <a href=\"https:\/\/u1f987.com\/en\/news\/new-class-action-filed-against-celsius-in-the-united-states\">had filed the motion in September<\/a>.<\/p>\n<p>Follow ForkLog&#8217;s Bitcoin news on our <a href=\"https:\/\/telegram.me\/forklog\" target=\"_blank\" rel=\"nofollow noopener\">Telegram<\/a> \u2014 cryptocurrency news, prices and analysis.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>BlockFi, a crypto-lending platform, filed a motion in the District of New Jersey bankruptcy proceedings to permit withdrawals by users from wallet accounts.<\/p>\n","protected":false},"author":1,"featured_media":71712,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1300,1436,1162],"class_list":["post-71711","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bankruptcy","tag-blockfi","tag-court-cases"],"aioseo_notices":[],"amp_enabled":true,"views":"13","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/71711","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=71711"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/71711\/revisions"}],"predecessor-version":[{"id":71713,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/71711\/revisions\/71713"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/71712"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=71711"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=71711"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=71711"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}