BlockFi, a leading loan platform, is gearing up to allow users to withdraw their funds in the summer of 2023. The platform had to halt its operations in 2022 due to the repercussions of the collapse of the FTX exchange. However, with concerted efforts in recent times, the platform has announced that it will complete the necessary work and enable users to reclaim their assets by the summer of 2023.
“At that time, we will allow customers to withdraw their digital assets held in their BlockFi wallets,” the company stated in an email to its customers on June 12th.
Earlier today, we filed our disclosure statement with the Court. This is an important step forward in our chapter 11 cases toward our goal of maximizing recoveries for our clients: https://t.co/6lnZmLOwG8
— BlockFi (@BlockFi) May 13, 2023
Before allowing withdrawals, the platform will need to undergo updates. Specifically, BlockFi mentioned that it needs to upgrade the user interface to align with the state of suspension in November 2022.
The platform will support withdrawals of digital assets. BlockFi stated that withdrawal requests will be processed in batches, and eligible individuals will receive emails from the company. Additionally, the platform recommends users to utilize third-party wallets for their withdrawals.
BlockFi has faced difficulties since filing for Chapter 11 bankruptcy in November 2022. The platform failed to sell itself to repay its creditors, with lawyers suggesting that “the deal would not provide value to customers due to recent regulations.”
BlockFi is a global lending organization with over $10 billion in total assets under management. The company allows users to earn profits by depositing funds on its platform. In 2021, BlockFi was valued at $5 billion, but it is currently worth only around $500 million.
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