BlockFi allowed the resumption of withdrawals in the summer

block fi
block fi

Cryptolending platform BlockFi is waiting for the completion of testing in order to open the possibility of withdrawal of funds by some clients in the summer. The Block writes about it.

“We will soon allow the withdrawal of digital assets from BlockFi Wallet accounts that are not subject to potential creditors’ rights of preferential satisfaction,” says in a letter to clients.

Payments will be made in installments. Those who can count on it will receive a special notification from the platform.

BlockFi encouraged users to create third-party wallets to carry out such transactions.

On November 11, 2022, the company suspended withdrawals, citing the FTX and Alameda Research crisis. A few days earlier, the founder of the platform, Flory Marquez, assured that all the company’s products are workable, and the business does not depend on the firms of Sam Bankman-Fried.

On November 28, BlockFi and eight subsidiaries filed for Chapter 11 bankruptcy.

Recall that in May 2023, the court allowed the company to return $ 300 million to customers, which are stored in custodial accounts. The court did not recognize this amount as the property of the platform.

Subsequently, the management announced the planned liquidation of the platform after an unsuccessful deal to sell it.

The amount of damages to clients depends largely on the outcome of pending proceedings against the collapsed crypto exchange FTX and Alameda Research, as well as the bankrupt hedge fund Three Arrows Capital.

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