{"id":78637,"date":"2023-05-12T10:11:00","date_gmt":"2023-05-12T07:11:00","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=78637"},"modified":"2025-09-11T06:27:49","modified_gmt":"2025-09-11T03:27:49","slug":"judge-allows-return-of-300-million-to-blockfi-clients","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/judge-allows-return-of-300-million-to-blockfi-clients\/","title":{"rendered":"Judge Allows Return of $300 Million to BlockFi Clients"},"content":{"rendered":"

The approximately $300 million held in custodial accounts are not property of the BlockFi platform and may be returned to their owners. This was ruled by the bankruptcy judge, according to CoinDesk<\/a>.<\/p>\n

Such an interpretation does not apply to the $375 million in the BIA<\/span>, he added.<\/p>\n

The judge noted that all transfers from the latter type of account to custodial after 20:15 on November 10, 2022 were not completed, although in the BlockFi interface users received a notification of successful completion of the operations.<\/p>\n

\n

\u201cHolders of the BIA placed their assets with full understanding that they were taking on certain risks in exchange for the possibility of higher profits. Custodial-wallet holders did not take this step. Their ownership rights to the property should not be blurred by the first category of platform users,\u201d<\/em> \u2014 the judge explained.<\/p>\n<\/blockquote>\n

Custodial-account holders have not yet received their funds due to a dispute over the status of the BIA. On November 10 the platform paused transfers between accounts, and on November 18 it made corresponding changes to the app.<\/p>\n

BlockFi suspended withdrawals<\/a>, citing the FTX and Alameda Research crisis. A few days earlier, the platform’s founder Flori Marquez assured<\/a> that all of the company’s products were functioning, and the business did not depend on the firms Sam Bankman-Fried<\/a>.<\/p>\n

As previously reported, on 28 November BlockFi and eight subsidiaries filed for bankruptcy<\/a> under Chapter 11 of the United States Bankruptcy Code<\/a>. The FTX Group took this step<\/a> on November 11.<\/p>\n","protected":false},"excerpt":{"rendered":"

The approximately $300 million held in custodial accounts are not property of the BlockFi platform and may be returned to their owners.<\/p>\n","protected":false},"author":1,"featured_media":78638,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1436,1162],"class_list":["post-78637","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-blockfi","tag-court-cases"],"aioseo_notices":[],"amp_enabled":true,"views":"17","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/78637","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=78637"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/78637\/revisions"}],"predecessor-version":[{"id":78639,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/78637\/revisions\/78639"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/78638"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=78637"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=78637"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=78637"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}