Bankrupt lending platform BlockFi recently informed its users via email on June 12 that it will need to perform updates before it can distribute funds to them. The updates are scheduled to take place during the summer season.
In a court order issued on June 9, it was determined that BlockFi users have ownership of the assets in their wallet accounts, allowing the company to permit certain withdrawals. However, prior to enabling withdrawals, BlockFi emphasized the need to carry out updates. These updates are primarily focused on upgrading the user interface (UI) to accurately account for transactions and assets at the time of the service pause in November 2022. Additionally, BlockFi mentioned that it will introduce new product functionality to its platform, without providing specific details about these features.
BlockFi stressed that performing these updates is essential for the accurate and secure processing of withdrawals. It assured users that the upgrades will be completed over the summer, positioning the company to commence fund distribution thereafter. The court order issued on June 9 explicitly authorizes BlockFi to make these upgrades.
Users should note that BlockFi intends to support withdrawals in cryptocurrencies, not cash. Furthermore, the platform informed users that withdrawals will be conducted in groups and advised them to set up external addresses for withdrawals while waiting for the process to commence.
BlockFi’s bankruptcy case has been ongoing since November 2022, and the company currently owes a significant amount, estimated to be between $1 billion and $10 billion, to its creditors.