BlockFi is expecting to open up the option to withdraw funds from certain client accounts in the summer once testing is completed.
In a letter to customers, the company stated, “We will soon enable withdrawal of digital assets from BlockFi Wallet accounts that are beyond the scope of any potential lender’s rights of preferential satisfaction.”
Payments will be made in installments, with customers receiving a notification from the company accordingly.
BlockFi has also encouraged customers to create external wallets for those withdrawals.
The withdrawals were first put on hold in November 2022 following the FTX and Alameda Research crisis, despite the fact that the founder of BlockFi, Flory Marquez, had previously said that the platform’s operations were not impacted by Sam Bankman-Fried’s firms.
Unfortunately, later that month on November 28, BlockFi filed for Chapter 11 bankruptcy along with eight of its subsidiaries.
By May 2023, the court had allowed the company to return $300 million in funds held in custodial accounts to its customers, who the court did not recognize as having ownership of those funds.