Yesterday, we took an important step toward our goal of returning assets to clients through our chapter 11 cases. It is our belief that clients unambiguously own the digital assets in their BlockFi Wallet Accounts. As such, we filed a motion requesting authority from the U.S. Bankruptcy Court to allow clients to withdraw digital assets that are held in their BlockFi Wallet Accounts. We will be seeking similar relief from the Supreme Court of Bermuda with respect to BlockFi Wallet Accounts held at BlockFi International Ltd. This motion does not impact withdrawals or transfers from BlockFi Interest Accounts, which remain paused at this time.
In order to facilitate withdrawals from BlockFi Wallet Accounts, we also requested permission to update the User Interface to properly reflect transactions as of the platform pause on November 10, 2022 at 8:15 p.m. (prevailing Eastern Time). As outlined in the Wallet Motion, balances displayed on the user interface may not properly reflect underlying balances at the time of the platform pause, as it took BlockFi a period of time following the platform pause to fully disable the transactional request functionality of BlockFi’s client-facing user interface. Attempted transactions during this time period did not actually take place.
Updating the User Interface is a necessary step towards ensuring all clients are treated fairly and that the User Interface properly reflects the digital assets in Wallet Accounts as of the pause so BlockFi can honor all withdrawal requests from Wallet Accounts properly if authorized by the U.S. Bankruptcy Court and, with respect to BlockFi International Ltd., the Supreme Court of Bermuda.
While filing this motion is an initial step, we will continue to work towards solutions that maximize value for all clients and other stakeholders and will share updates as quickly as practicable.
We are looking forward to discussing this motion with the U.S. Bankruptcy Court and key parties in our cases, and expeditiously moving towards a path that returns Wallet Account assets to clients.
Additional information regarding our chapter 11 cases, including court documents and claim information, can be found by visiting BlockFi’s claims agent Kroll at https://restructuring.ra.kroll.com/blockfi. Clients with questions about the process may call Kroll at (888) 773-0375 (Toll Free) or (646) 440-4371 (International), or email firstname.lastname@example.org.
Last updated on February 9th, 2023