BlockFi Expects to Enable Customer Withdrawals By 2023 Summer

Bankrupt lending platform BlockFi needs to make updates before customers can withdraw crypto assets held in its wallet accounts that are not subject to potential preference claims.

In a statement emailed to its customers, BlockFi said it must finish all the “work” necessary to enable customer withdrawals by this summer.

• The company said it would add new product functionality to its platform before enabling checkouts but did not detail what those features would include.
• According to the new to updateWithdrawals must be made in batches, while eligible users will receive an email.
• The lender also advised users to set up a third-party wallet for the process.

“BlockFi needs to create new product functionality and make changes to the platform in order to process these withdrawals. We expect this work and the necessary tests to be completed this summer. At that time, we will be in a position to start allowing customers to withdraw digital assets held in BlockFi Wallet Accounts Not Subject to Potential Preference Claims”.

• This development follows an order issued by the Bermuda Supreme Court on June 9, allowing the platform to reopen withdrawals for customers with BlockFi Wallet accounts.
• Since then, the user interface has been updated to accurately reflect users’ transactions and account balances as of the platform’s suspension date of November 10, 2022.
• BlockFi was one of many cryptocurrency lenders that went bankrupt during the market turmoil last year. It owes between $1 billion and $10 billion to its creditors.
• Last month, the company asked the court to authorize the sale of its lending arm to help generate funds to make repayments to creditors after not receiving value-maximizing offers from potential buyers.