BlockFi Expects to Enable Customer Withdrawals By 2023 Summer

Bankrupt lending platform BlockFi needs to conduct updates before enabling customer withdrawals of crypto assets held in its wallet accounts that are not subject to potential preference claims.

In an emailed statement to its clients, BlockFi said it should conclude all the necessary “work” to enable customer withdrawals by this summer.

• The company said it will add a new product functionality to its platform before enabling withdrawals but has not detailed what these features will include.
• According to the new update, withdrawals must be made in batches, while the 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 in order to process these withdrawals. We anticipate that this work and the necessary testing will be completed this summer. At that time, we will be in a position to begin allowing clients to withdraw digital assets held in BlockFi Wallet accounts that are not subject to potential preference claims.”

• The development follows an order issued by the Supreme Court in Bermuda on June 9th, 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 several crypto lenders to go bankrupt during the market turmoil last year. It owes between $1 billion and $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 value-maximizing offers from potential buyers.