BlockFi Ask Permission to Unfreeze Users Accounts

Troubled cryptocurrency exchange BlockFi which filed for Chapter 11 bankruptcy in New Jersey has asked a United States Bankruptcy Court for authorization to refund digital assets on the platform’s wallets to their owners.

Specifically, the motion which was filed on Monday requested that users who have been locked out of their accounts since the second week in November when BlockFi suspended withdrawals, should be allowed access to their crypto.

Also, the motion has requested approval to edit its user interface so that it reflects transactions since the platform’s suspension.

BlockFi is of the opinion that this would in no way interfere with withdrawals or transfers from BlockFi Interest Accounts which will remain suspended. The bankruptcy court is yet to make a decision on the motion but has scheduled a hearing for January 9th. 

According to an email sent to all affected investors, the motion was regarded as an “important step toward our goal of returning assets to clients through our chapter 11 cases.” Additionally, “It is our belief that clients unambiguously own the digital assets in their BlockFi Wallet Accounts.”

Amidst all these, BlockFi intends to pursue a related request from the Supreme Court of Bermuda where the company is based concerning BlockFi Wallet Accounts held at BlockFi International Ltd. Its hearing has been fixed for January 13th. For a crypto exchange that filed for bankruptcy barely a month ago, it has been recognized that BlockFi is moving at an applaudable pace.

BlockFi Bankruptcy Moves At Great Speed

Tiffany Fong, a crypto blogger commended BlockFi for a great job thus far. She went as far as comparing the speed of its restructuring filing to that of Celsius Network which happened almost five months ago. However, she announced that has already moved her BlockFi portfolio to Celsius Network. 

Since July when Celsius Network filed for bankruptcy, the defunct exchange has hit several rock bottoms.

A few months ago, Alex Mashinsky resigned as the Chief Executive Officer (CEO) of Celsius Network. In October, Daniel Leon, a co-founder, and chief strategy officer (CSO) at the exchange also stepped down from his position.

Presently, Celsius is seeking an extension of its exclusivity period after failing to come up with a restructuring plan.