BlockFi, along with eight affiliated companies, filed for Chapter 11 bankruptcy protection on November 10 and asked the US court to permit some customers to withdraw their cryptocurrencies from locked digital wallets.
Additionally, the company’s non-US counterpart, BlockFi International, made a similar request to the Supreme Court of Bermuda.
The filing revealed that BlockFi has assets and liabilities in the range of $1 billion and $10 billion, as well as more than 100,000 creditors.
The company blamed its financial distress on its “substantial involvement” with the bankrupt FTX, which has reportedly frozen the funds of around 1 million clients.
However, the proposal to unfreeze assets does not cover customers with funds in its crypto interest-bearing accounts, which will stay frozen.
The bankruptcy court will determine on January 9 whether to release the assets to customers, and the international arm’s hearing is scheduled for January 13.
