[BlockFi opens cryptocurrency withdrawals for qualified U.S. users following court order]
Many customers of virtual currency lending firm BlockFi reported being able to withdraw money for the first time following a U.S. Bankruptcy Court order.
On August 17, BlockFi announced that it had opened wallet withdrawals for eligible U.S. users in compliance with court orders. Some wallets controlled by international users are still not open for withdrawals, but the relevant legal proceedings are still ongoing.
BlockFi notifies users that based on certain conditions, such as U.S. account holders who have not withdrawn or transferred more than $7,575 in digital assets after November 2, 2022, they can ) to make a withdrawal.
BlockFi is among the companies to file for bankruptcy protection in the United States in 2022, including FTX, Celsius Network, and Voyager Digital. The company suspended customer withdrawals in November 2022 and filed a motion in December to return user funds.
On August 16, an order from the U.S. Bankruptcy Court in New Jersey allowed BlockFi to open withdrawals for the first time in nine months. Some users have been able to withdraw their funds, but some foreign users said they are still not eligible.
BlockFi reported on August 2 that the bankruptcy court conditionally approved its reorganization plan and plans to prioritize the recovery of funds from Alameda Research, FTX and others. In addition, BlockFi also faces a $30 million fine from the U.S. Securities and Exchange Commission, which will be deferred until BlockFi users are repaid.