BlockFi, a defunct cryptocurrency lending platform, has submitted a motion asking the United States Bankruptcy Court for permission to permit its users to withdraw digital assets currently kept in BlockFi Wallets, Cointelegraph noted.
Cointelegraph further noted that the lender requested permission from the bankruptcy court to recognise client withdrawals from wallet accounts as of the platform’s pause on November 10 in a motion submitted on December 19 to the U.S. Bankruptcy Court for the District of New Jersey.
Additionally, permission is sought in the court documents so that the user interface can be updated to accurately reflect transactions following the platform’s pause, Cointelegraph stated.
BlockFi claims that this motion won’t have an impact on transfers or withdrawals from BlockFi Interest Accounts, which are currently paused.
Additionally, the lending platform has stated that it intends to ask Bermuda’s Supreme Court for “similar relief with respect to BlockFi Wallet Accounts held at BlockFi International Ltd.”
The business with its non-U.S. operations is based in Bermuda, and BlockFi International is a division of that business.
On November 11, BlockFi requested that customers refrain from depositing funds into BlockFi wallets or Interest Accounts and halted client withdrawals, citing a lack of clarity surrounding FTX.
For the company and its eight subsidiaries, BlockFi filed for Chapter 11 bankruptcy on November 28 in the United States Bankruptcy Court for the District of New Jersey. On the same day, BlockFi International filed for bankruptcy with the Supreme Court of Bermuda.
(With insights from Cointelegraph)
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