BlockFi: blocked cryptos soon to be released? US justice needs to be prayed for

A sigh of relief to come? – The crypto lending platform BlockFi filed a request to can return cryptocurrency of some of its users. The bankruptcy proceedings of the company is progressing, but it is far from over given the large debts of the company.

An upcoming release of cryptos frozen on BlockFi?

In a motion filed on December 19 in the U.S. Bankruptcy Court for the District of New Jersey, BlockFi sought permission to reopen withdrawals for the funds blocked on the platform since November 11. The court will consider this motion on January 9.

The company also sought court approval to update interface of the platform in order to display the correct information on the transactions there, since the pause of the withdrawals.

BlockFi: a motion to request the reopening of withdrawals
Post by crypto blogger Tiffany Fong – Source: Twitter

BlockFi users deprived of their funds could so soon repossess of their assets, if the court grants this request. In the meantime, withdrawals and transactions relating to BlockFi’s interest accounts still remain suspended, despite this move.

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BlockFi and Celsius: progress, certainly, but a long way to go

BlockFi could thus take another important step in its bankruptcy proceedings in the United States. The company has also informed of its intention to request “similar relief from the Supreme Court of Bermuda”.

The request would relate to the “BlockFi Wallet accounts” of BlockFi International, the company’s subsidiary that handles its non-US operations. A audience with the Supreme Court of Bermuda regarding these accounts would be scheduled for the January 13, 2023.

BlockFi is not not the only crypto company having failed during these bear markets who are considering or beginning to repay their clients’ funds. Indeed, on December 7, the bankruptcy court for the Southern District of New York authorized the crypto lending platform Celsius to repay $44 million to some of the company’s customers.

But although some BlockFi customers may soon regain control of their cryptocurrency, the company is far from done honoring all its debts. According to her bankruptcy filing, she must $1.3 billion to its 50 main creditors. And the company has a total of more than 100,000 creditors.

L’FTX collapse which dragged down other crypto companies, such as BlockFi, in its fall unfortunately marked the end of 2022 for the industry. All these jolts are a windfall for cryptocurrency critics, like this senator who wants to ban Bitcoin (BTC) in the United States.

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