BlockFi hopes to enable customer withdrawals by summer 2023

Bankruptcy lending platform BlockFi needs to update before enabling customer withdrawals of 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 should complete all necessary “work” to enable customer withdrawals by this summer.

• The company said it would add new product functionality to its platform before enabling withdrawals, but did not elaborate on what those features would include.
• according to the new UpdatesWithdrawals should be done in batches, while eligible users will receive an email.
• The lender further advised users to set up a third-party wallet for the process.

“Blockfi needs to build new product functionality and make changes to the platform to process these withdrawals. We expect this work and necessary testing to be completed this summer. At that time, we will be able to transfer customers to Blockfi Wallet accounts.” Will be in a position to start allowing withdrawal of held digital assets that are not subject to potential priority claims.

• The development follows an order issued by the Supreme Court of Bermuda 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 suspension date of November 10, 2022.
• BlockFi was one of the many crypto lenders to go bankrupt during the market turmoil last year. It owes between $1 billion to $10 billion to its creditors.
• Last month, the company requested that a court authorize the sale of its lending arm to help generate funds to repay creditors after failing to receive price-maximum offers from potential buyers.