BlockFi Seeks Court Approval to Convert Users’ “Trade-Only” Wallet Assets to Withdrawable Stablecoins Bankrupt crypto lender
BlockFi has filed a motion for order in the US bankruptcy court for the District of New Jersey, seeking permission to convert "trade-only" wallet assets into stablecoins,
“that wallet users could then withdraw.”
According to the proposal,
these assets comprise less than one-half of a percent (0.5%) of all wallet addresses of BlockFi users in the US. The assets include
Algorand (ALGO), Bitcoin Cash (BCH), and Dogecoin (DOGE).
Simply put, trade-only tokens are available to trade
on different markets on Spot and Margin, however, their wallets are disabled.
BlockFi states that these assets are currently
not available for withdrawal due to practical limitations. As a result, the troubled crypto lender suggests a one-time exchange of
the trade-only assets for Gemini Dollar (GUSD) or other stablecoins of BlockFi’s choosing.
Digital assets including Cardano (ADA), Solana (SOL), Avalanche (AVAX), Polygon (MATIC), and other trade-only assets are being held separately
by BlockFi International.
“The move will allow for a comprehensive withdrawal process for all wallet assets.”
