The ~$300 million in custodial accounts are not the property of the BlockFi platform and can be returned to their owners. So decided the bankruptcy judge, writes CoinDesk.
This interpretation does not apply to $375 million BIAhe added.
The judge noted that all transfers from the last type of account to custodial after 20:15 on November 10, 2022 were not completed, although users received a notification on the successful completion of transactions in the BlockFi interface.
“BIA’s owners placed their assets with the full knowledge that they were taking on certain risks in exchange for the opportunity to generate greater returns. Customers of custodial wallets did not take this step. Their ownership of real estate should not be diluted by the first category of platform users,” the judge explained.
The custodial account holders have not yet received their funds due to a dispute over BIA status. On November 10, the platform suspended transfers between accounts, and on November 18 made the appropriate changes to the application.
On November 11, 2022, BlockFi suspended withdrawals, citing the FTX crisis and Alameda Research. A few days before, the founder of the platform, Flory Marquez, assured that all the company’s products are workable, and the business does not depend on the firms of Sam Bankman-Fried.
Recall that on November 28, BlockFi and eight subsidiaries filed for insolvency in accordance with Chapter 11 of the US Bankruptcy Code. FTX Group took this step on November 11th.
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The ~$300 million in custodial accounts are not the property of the BlockFi platform and can be returned to their owners. So decided the bankruptcy judge, writes CoinDesk.
This interpretation does not apply to $375 million BIAhe added.
The judge noted that all transfers from the last type of account to custodial after 20:15 on November 10, 2022 were not completed, although users received a notification on the successful completion of transactions in the BlockFi interface.
“BIA’s owners placed their assets with the full knowledge that they were taking on certain risks in exchange for the opportunity to generate greater returns. Customers of custodial wallets did not take this step. Their ownership of real estate should not be diluted by the first category of platform users,” the judge explained.
The custodial account holders have not yet received their funds due to a dispute over BIA status. On November 10, the platform suspended transfers between accounts, and on November 18 made the appropriate changes to the application.
On November 11, 2022, BlockFi suspended withdrawals, citing the FTX crisis and Alameda Research. A few days before, the founder of the platform, Flory Marquez, assured that all the company’s products are workable, and the business does not depend on the firms of Sam Bankman-Fried.
Recall that on November 28, BlockFi and eight subsidiaries filed for insolvency in accordance with Chapter 11 of the US Bankruptcy Code. FTX Group took this step on November 11th.
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