Bankrupt crypto lending company BlockFi is asking the US Bankruptcy Court to return crypto held at frozen accounts back to clients, adding that they "unambiguously own" the crypto stored in their wallet accounts.
BlockFi said in a blog post it will be seeking "similar relief" from the Supreme Court of Bermuda regarding crypto held at BlockFi International. However, the efforts do not impact withdrawals from BlockFi Interest Accounts, the company said.
It is expected that the court will review the request on January 9, 2023, while similar relief with respect to BlockFi International will be heard on January 13, 2023.
BlockFi filed for Chapter 11 bankruptcy protection in the US Bankruptcy Court for the District of New Jersey in late November as the company failed to weather the storm triggered by FTX's collapse.
The company said in a press release it has around $257 million in cash on hand, which would be used to support the restructuring process. According to the court documents, BlockFi — which was valued in a moment at $4.8 billion — had over 100,000 creditors, with liabilities and assets ranging from $1 billion to $10 billion.
