BlockFi, a cryptocurrency company that filed for Chapter 11 bankruptcy protection along with eight affiliates on November 10, has requested permission from a U.S. court to allow some clients to withdraw cryptocurrencies from their locked digital wallets.
The company has also made a similar request to the Supreme Court of Bermuda on behalf of its non-U.S. counterpart, BlockFi International.
In its initial bankruptcy filing, BlockFi stated that it has assets between $1 billion and $10 billion, with liabilities in the same range, along with over 100,000 creditors.
The company attributed its difficulties to “significant exposure” to the cryptocurrency exchange FTX, which filed for bankruptcy protection on November 11 and trapped the funds of an estimated 1 million creditors.
BlockFi’s request to unfreeze assets does not include customers with funds stuck in its crypto interest-bearing accounts, which will remain paused.
A decision on the request to return assets to customers will be made by the bankruptcy court on January 9, with a similar hearing for the international arm on January 13.
