BlockFi Seeks Permission to Convert Trade-Only Wallet Assets into Stablecoins
Crypto lender BlockFi has filed a motion in the US bankruptcy court for the District of New Jersey, requesting permission to convert trade-only wallet assets into stablecoins that users can withdraw. These assets, including Algorand, Bitcoin Cash, and Dogecoin, make up less than 0.5% of all wallet addresses of BlockFi users in the US. Currently, these assets are not available for withdrawal due to practical limitations. BlockFi proposes a one-time exchange of the trade-only assets for Gemini Dollar or other stablecoins. The move will allow for a comprehensive withdrawal process for all wallet assets. A hearing date for the appeal has not been announced yet.
Key Points:
- BlockFi files motion to convert trade-only wallet assets into stablecoins for withdrawal.
- Assets include Algorand, Bitcoin Cash, and Dogecoin.
- Trade-only assets are not currently available for withdrawal due to practical limitations.
- BlockFi suggests a one-time exchange of assets for Gemini Dollar or other stablecoins.
- The move will enable a comprehensive withdrawal process for all wallet assets.
BlockFi Permits Crypto Withdrawals for Eligible Users
BlockFi has announced that it is now allowing eligible user wallets in the US to withdraw their crypto assets, in compliance with a court order. Eligible clients are US-based BlockFi Wallet account holders who have not withdrawn or transferred over $7,575 worth of crypto assets and do not hold any trade-only assets. This move provides users with the ability to access and withdraw their funds. BlockFi is continuing to navigate legal disputes, including a repayment dispute with FTX exchange and Three Arrows Capital.
Hot Take
BlockFi’s motion to convert trade-only wallet assets into stablecoins shows their commitment to providing a comprehensive withdrawal process for users. By allowing eligible clients to withdraw their crypto assets, BlockFi is taking steps to comply with legal requirements and meet user demands. However, the ongoing legal disputes with FTX and Three Arrows Capital highlight the challenges and complexities of the crypto lending industry.
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