BlockFi, the bankrupt lending platform, has announced that it needs to carry out updates before customers can withdraw their crypto assets held in wallet accounts. The platform has stated that this “work” should be completed by summer, and it will add new product functionality to its platform before allowing withdrawals.
New Withdrawal Process
BlockFi has not provided any details about the new features that will be added to its platform, but it has announced that withdrawals must be made in batches. Eligible users will receive an email, and the lender has advised them to set up a third-party wallet for the process.
Supreme Court Order
The announcement follows an order issued by the Supreme Court in Bermuda on June 9th. This order allowed the platform to reopen withdrawals for customers with BlockFi Wallet accounts. Since then, the user interface has been updated to reflect users’ transactions and account balances as of the platform suspension date of November 10, 2022.
Bankruptcy and Repayment
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 generate funds to repay creditors after failing to receive value-maximizing offers from potential buyers.
BlockFi is set to allow customers to withdraw their crypto assets held in wallet accounts after completing updates to its platform. The lender has not provided any details about the new features that will be added to its platform, but withdrawals will be made in batches. Eligible users will receive an email, and the lender has advised them to set up a third-party wallet for the process. The announcement 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. BlockFi was one of several crypto lenders to go bankrupt during the market turmoil last year and owes between $1 billion and $10 billion to its creditors.