<a href="https://www.cryptoknowmics.com/news/blockfi-files-for-bankruptcy-protection-following-collapse-of-ftx">BlockFi</a>, a defunct cryptocurrency lending platform, has <a href="https://restructuring.ra.kroll.com/blockfi/Home-DocketInfo">submitted</a> a motion asking the United States Bankruptcy Court for permission to enable its users to withdraw <a href="https://www.cryptoknowmics.com/news/forum3-raises-10m-to-bring-digital-assets-to-brands-loyalty-programs">digital assets</a> currently kept in BlockFi Wallets and return their Frozen Crypto.
<h2>BlockFi to Give Wallet Owners Frozen Crypto</h2>
The lender requested permission from the <a href="https://www.cryptoknowmics.com/news/bankruptcy-judge-demands-return-of-44m-in-crypto-to-celsius-users">bankruptcy</a> court to recognize customer withdrawals from wallet accounts as of the network's halt on November 10 in a move submitted on December 19 to the U.S. Bankruptcy Court for the District of New Jersey.

In court filings, approval is also sought to alter the user interface so that it accurately reflects transactions following the platform's stop. BlockFi described the move as an essential step towards the aim of restoring frozen crypto and funds to customers through the<a href="https://www.cryptoknowmics.com/news/celsius-receives-extension-to-file-chapter-11-restructuring-plan"> chapter 11</a> proceedings in a widely circulated message sent to impacted users.
<h2>No Affect on BlockFi Interest Account</h2>
BlockFi claims that this action won't affect the halted status of BlockFi Interest Account withdrawals or transfers, still permitted at the moment.

Additionally, the lending network has stated that it intends to ask Bermuda's Supreme Court for an equivalent remedy with regard to BlockFi Wallet Accounts held at BlockFi International Ltd. The business that manages its non-U.S. activities is situated in <a href="https://www.cryptoknowmics.com/news/bermuda-digital-bank-jewel-issues-fully-backed-stablecoin">Bermuda</a>, and BlockFi International is a division of that business.
<h2>Hearing Schedule for the Petition</h2>
Cryptocurrency writer Tiffany Fong tweeted the message BlockFi emailed her on December 19, making the observation that the troubled company looks to be operating much more quickly than <a href="https://www.cryptoknowmics.com/news/bankruptcy-judge-demands-return-of-44m-in-crypto-to-celsius-users">Celsius</a>, which declared bankruptcy over five months earlier in July, as contrasted to BlockFi's bankruptcy filing in November. According to court filings, the hearing to determine whether the request will be granted is planned for January 9, 2023.

On January 13, 2023, the Supreme Court of Bermuda will hear a separate case involving wallet accounts stored at BlockFi International Ltd.

BlockFi Submits Petition to Give Wallet Owners Their Frozen Crypto

BlockFi has submitted a motion asking the US Bankruptcy Court to allow its users to withdraw digital assets and return their Frozen Crypto.

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BlockFi Submits Petition to Give Wallet Owners Their Frozen Crypto

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