BlockFi confirms move to allow BlockFi Wallet users access to funds

2022-12-20 19:30

BlockFi released a statement on Dec. 20 confirming a motion filed in relation to BlockFi wallet users accessing funds.

The company is most well known for its yield-bearing service, BlockFi Interest Accounts; however, a core product within the BlockFi ecosystem was a custodial crypto wallet. The wallet was not subject to lending services; thus, BlockFi argued that ” it is our belief that clients unambiguously own these assets.”

The terms of service (ToS) for the wallet clearly state that the ownership of the cryptocurrency stored therein remains the property of the individual, not BlockFi.

“The title to the cryptocurrency held in your BlockFi Wallet shall at all times remain with you and shall not transfer to BlockFi.”

The statement comes hours after news broke through a leaked email that customers may soon be able to access funds.

Funds deposited into BlockFi were sent to the BlockFi wallet. Users could move their digital assets into one of its yield-bearing services to gain up to 10% interest on stablecoins and other assets.

The ToS for the wallet product also confirms that it is a “non-interest-bearing” account.

“Our BlockFi Wallet is a non-interest-bearing crypto account that allows you to hold, transfer and manage your cryptocurrency held in your account.”

BlockFi ran into trouble due to liquidity issues earlier in 2022. It had reported holding just 10% of customer funds in reserve, acting similarly to a fractional reserve bank. In addition, 50% of funds were reported to have been in “short-term” positions. However, due to the high-risk nature of crypto lending, BlockFi eventually experienced liquidity issues that forced it into bankruptcy.

It is unclear at this time why customer funds that were clearly designated as being solely owned by its customers were entered into bankruptcy proceedings. However, clause F in the ToS does give BlockFi the right to transfer clients’ wallet funds upon court request. Such a clause is usually reserved for situations of bankruptcy or other financial matters related to customers as opposed to the custodian itself.

“Except as required by a valid court order or applicable law, BlockFi shall not sell, transfer, loan, hypothecate or otherwise alienate cryptocurrency held in your BlockFi Wallet unless specifically instructed by you.”

Unlike non-custodial wallets, the BlockFi Wallet required users to log in to the BlockFi application in order to access any digital assets stored inside. However, after the company paused withdrawals, access to the application was revoked for customers.

There was no private key made available to customers meaning that the account could not be imported into another wallet such as MetaMask or Trust Wallet. The wallet acted as a custodial crypto account for customers who did not want the responsibility of storing a seed phrase.

A date for the hearing is set for Jan. 9 for U.S. customers and Jan. 13 for international customers.

Further information can be found on the BlockFi blog.

The post BlockFi confirms move to allow BlockFi Wallet users access to funds appeared first on CryptoSlate.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

World Trade Funds (XWT) на Currencies.ru

$ 0 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: 0.00 %
Cегодня L: $0 - H: $0
Капитализация $0 Rank 99999
Доступно / Всего 0 XWT

blockfi users wallet funds confirms access move

blockfi users → Результатов: 45


CeFi Platform Celsius Restricts Yield Rewards To Only Accredited Investors In U.S.

Celsius has been positioned as one of the leading yield-generating CeFi platforms on the market, battling neck-and-neck with other dedicated CeFi platforms such as BlockFi and Nexo. Their positioning is seemingly weakened this week, certainly with retail investors, as the platform sent out an announcement to all users and released a public announcement that new funds supplied – even from existing accounts – into Celsius’ platform would no longer be eligible to earn yield unless they are accredited investors.

2022-4-13 03:15


Crypto Financial Service Firm, BlockFi, Launches Its Mobile-Based App Offering 8.6% Interest

In a release to the BEG reporting desk this Thursday, BlockFi, a crypto-focused financial service company, announced the launch of its mobile application. The mobile app is available on both iOS and Android devices allowing users to manage crypto-backed loans, Zero fee mobile transactions, trading, and earn up to 8.6% interest APY on deposits through […]

2020-6-25 16:19


BlockFi Adds New On-Ramp, Allowing Customers to Use Cash Deposits to Buy BTC

The cryptocurrency-focused financial company BlockFi said it now has a newly enabled feature that allows its customers to buy Bitcoin (BTC) with cash. Before, the Jersey City-based crypto lender, only allowed users only to transfer their digital assets [BTC, ETH, LTC, and stablecoins USDC, GUSD] onto the platform from wallets and exchanges. But after today's […]

2020-3-10 21:18


Litecoin foundation partners with BlockFi to provide more liquidity opportunities

Litecoin Foundation recently announced its partnership with BlockFi, a cryptocurrency lending startup, intending to promote the use of BlockFi's "suite of products" to provide Litecoin users with moreThe post Litecoin foundation partners with BlockFi to provide more liquidity opportunities appeared first on AMBCrypto.

2020-1-16 12:30


Фото:

BlockFi Pushes for Crypto Adoption by Offering Lucrative Interest on Bitcoin, Ether Deposits

Cryptocurrency loan platform BlockFi now allows users to earn interest as high as 6. 2 percent per annum on their digital currency deposits, reports Forbes, March 5, 2019. Lucrative Interest Rate Becomes the Talk of the Town The lines between traditional financial institutions like banks and digital currencies seem to be blurring at an astounding rate.

2019-3-7 13:02


Стартап BlockFi представил криптодепозитные счета с доходностью 6,2% годовых

Работающий в сегменте кредитования криптостартап BlockFi представил депозитные счета BlockFi Interest Account (BIA). Today we are launching the BlockFi interest Account (BIA). Users can securely store Bitcoin or Ether at BlockFi and receive 6% annual interest, paid monthly in cryptocurrency! BIA interest compounds monthly, delivering an industry-leading APY of 6.

2019-3-6 10:04