Troubled crypto lender BlockFi files motion to let users withdraw digital assets

BlockFi, the cryptocurrency lending platform that filed for bankruptcy protection last month, has filed a motion earlier this week asking a U.S. court to allow digital asset withdrawals that are currently frozen on the platform. Recall on November 10 when the company limited activity on its platform by pausing client withdrawals due to the "lack of clarity" on the status on Sam Bankman-Fried's empire at the time, which was comprised of crypto exchange FTX ( FTT-USD ) and trading firm Alameda Research. But FTX along with 130 of its affiliates ended up filing for bankruptcy during the month, in a move that ultimately drove BlockFi into Chapter 11. In an effort to better reflect transactions following the suspension of withdrawals, the company also requested authority to clear up the user interface. "It is our belief that clients unambiguously own the digital assets in their BlockFi Wallet Accounts," the company said Tuesday in a blog post . Also, the motion does not impact withdrawals or transfers from BlockFi Interest Accounts, which remain paused, it added. Note that the court hearing on the motion is scheduled for January 9, 2023. Previously, (Nov. 17) crypto lender Nexo reportedly offered to buy rival BlockFi for $850M in July .