BlockFi Moves To Grants Users Access To Trade Only Assets
BlockFi has filed a court petition to convert the Trade Only assets of its users to stablecoins, allowing for their withdrawal. The Trade-Only assets include tokens such as Algorand, Bitcoin Cash, and Dogecoin in the US market, and Cardano, Cosmos, Avalanche, and Solana in the international market. BlockFi claims that its custodial partner, BitGo, is unable to process blockchain transactions for these assets. Therefore, BlockFi proposes a one-time swap of the Trade Only assets for Gemini Dollar or any other stablecoin, which would then be transferred to the BitGo platform for withdrawal.
BlockFi Continues Efforts To Repay Creditors
BlockFi has been taking various actions to repay its creditors. It received conditional approval for its bankruptcy plan in August, which includes settling claims under $3,000 with a one-time cash distribution. Withdrawals were also reopened on August 17 after being paused since November 2022. BlockFi has filed a motion to counter FTX’s motion to recover $5 billion from BlockFi, arguing that its customers should be prioritized over FTX as the cause of its bankruptcy. BlockFi owes an estimated amount between $1 billion and $10 billion to over 100,000 customers.
Hot Take
BlockFi’s court petition to convert Trade Only assets to stablecoins shows its determination to repay its creditors and provide users with access to their assets. By proposing a one-time swap, BlockFi aims to overcome the technical limitations of its custodial partner and enable smooth withdrawals. However, the ongoing legal battle with FTX highlights the complexities and challenges faced by the company in resolving its financial situation. It remains to be seen how BlockFi will navigate these issues and fulfill its obligations to its creditors and customers.
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