Venture Capitalists News Hubb
Advertisement Banner
  • Home
  • Venture Capital Market
  • Venture Capital Funding
  • Contact
No Result
View All Result
  • Home
  • Venture Capital Market
  • Venture Capital Funding
  • Contact
No Result
View All Result
Venture Capitalists News Hubb
No Result
View All Result
Home Venture Capital Funding

BlockFi Can Return Nearly $300M to Some Wallet Customers, Judge Rules

admin by admin
May 11, 2023
in Venture Capital Funding


BlockFi customers who held crypto in interest-bearing accounts don’t have a right to nearly $375 million in crypto after the bankrupt lender froze assets last year, a judge ruled.

However, customers who held custodial wallets did not give up the same ownership rights.

Around $300 million can be returned to customers who held crypto in custodial accounts, meaning non-interest-bearing accounts.

BlockFi froze transfers in early November of last year, and officially filed for bankruptcy on Nov. 28. It quickly followed FTX following the defunct exchange’s collapse.

According to Judge Michael Kaplan, wallet transfers from interest-bearing accounts to custodial wallets did not occur after 8:15 pm ET on Nov. 10.

So, customers who still had crypto tied up in interest-bearing accounts – which totaled nearly $375 million – no longer have the right to those assets despite receiving email and in-app confirmation from BlockFi.

BlockFi, in court papers, said that $292 million in assets were stuck on the platform, all of which can be canceled by the company in Kaplan’s ruling.

“The user interface did not accurately reflect the transactions,” Kaplan said in court, according to a Bloomberg report.

“Quite simply, a customer’s withdrawal or transfer request on the user interface did not and does not automatically transfer digital assets,” Kaplan said, per Reuters.

The back-and-forth on account withdrawals has been ongoing since late last year.

Last December, the bankrupt lender filed a motion to allow some withdrawals to be processed though, even then, it was unclear if the interest-bearing accounts would be included in withdrawals.

In April, BlockFi was granted extra time to file its bankruptcy strategy. It has until May 15 to file its exit plan.

Kaplan reportedly granted the extension in hopes of making the continuation of the case smoother.


Get the day’s top crypto news and insights delivered to your email every evening. Subscribe to Blockworks’ free newsletter now.

Want alpha sent directly to your inbox? Get degen trade ideas, governance updates, token performance, can’t-miss tweets and more from Blockworks Research’s Daily Debrief.

Can’t wait? Get our news the fastest way possible. Join us on Telegram and follow us on Google News.





Source link

Tags: bankruptcyBlockFi
Previous Post

Supercharge Productivity: Chrome Shortcuts & Tricks

Next Post

Why Windows and Mac-OS Are Looking Over Their Shoulders

Next Post

Why Windows and Mac-OS Are Looking Over Their Shoulders

Recommended

Bahamian Regulator Accuses John Ray of ‘Misstatements’ Regarding FTX

12 months ago

Coinbase CEO To Sell 2% of His COIN To ‘Fund Scientific Research’

1 year ago

VMware’s grant to IIT Bombay for deep tech research

12 months ago

Justin Sun-related Valkyrie Wants to Take on Grayscale Bitcoin Trust

11 months ago

Web3 Watch: A bullish week for blockchain gaming

1 month ago

MakerDAO co-founder floats using Solana’s code to build new chain

3 months ago

© Venture CapitaLists News Hubb All rights reserved.

Use of these names, logos, and brands does not imply endorsement unless specified. By using this site, you agree to the Privacy Policy and Terms & Conditions.

Navigate Site

  • Home
  • Venture Capital Market
  • Venture Capital Funding
  • Contact

Newsletter Sign Up.

No Result
View All Result
  • Home
  • Venture Capital Market
  • Venture Capital Funding
  • Contact

© 2022 Venture Capitalists News Hubb All rights reserved.