BlockFi Customers Await Summer to Withdraw Crypto Assets

In short: Crypto lender BlockFi plans to enable customer withdrawals of digital assets held in its wallet accounts by this summer after conducting necessary updates to the platform. The company has not detailed what new features it will add to the product functionality. Withdrawals must be made in batches, and eligible users will receive an email. BlockFi advises setting up a third-party wallet for the process. Last year, the platform, which owes between $1bn and $10bn to creditors, was one of several to go bankrupt during the market turmoil. Our quick analysis: In a new announcement, BlockFi informed its customers that it needs to perform some updates before enabling withdrawals of crypto assets in its wallet accounts. The lending platform plans to add new product features before allowing withdrawals, but what those features will be remains a mystery. According to the company's statement, customers must withdraw their assets in batches, and only eligible users can receive an email regarding the process. BlockFi also suggested setting up a third-party wallet for the withdrawal before allowing clients to withdraw digital assets held in BlockFi Wallet accounts that are not subject to potential preference claims in the summer. Back in June, the Supreme Court issued an order that allowed the platform to reopen withdrawals for customers with BlockFi Wallet accounts. However, the lender owed between $1 billion and $10 billion to its creditors and was one of several crypto lenders that went bankrupt during the market turmoil last year. Last month, BlockFi requested a court's authorization to sell its lending arm to repay creditors after failing to receive value-maximizing offers from potential buyers. In summary, BlockFi customers will have to wait for a few more months before they can withdraw their crypto assets held in BlockFi Wallet accounts. Stay tuned for more updates. Image provided by Unsplash Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.