BlockFi embroiled in bankruptcy drama over customer wallets
BlockFi embroiled in bankruptcy drama over customer wallets
While its customers have been locked out of their accounts since November, failed crypto lender BlockFi is locked in a bankruptcy court battle. the court battle also underscores how tricky it can be for customers of defunct crypto firms to get their money back.
The war of words is playing out on a court docket in New Jersey, with the fight over customer wallets becoming so tense that BlockFi debtors have suggested the creditors in the case are “divorced from reality.” Those creditors in turn accused BlockFi of having a “temper tantrum.” A bankruptcy court is considering whether BlockFi customers can touch the digital assets in their wallet accounts. Lawyers for the BlockFi debtors argued in a December motion that clients should be given access, citing the company’s terms of service.
