A New Jersey judge has reportedly ruled that BlockFi owns the money customers transferred from interest-bearing accounts when the bankrupt cryptocurrency lender froze withdrawals last year.
In November, BlockFi announced it would stop allowing customers to withdraw their funds amid uncertainties over the status of crypto exchange FTX and its Alameda Research trading arm.
A number of BlockFi users made a last-ditch effort to secure their investments and moved their coins even after the platform stopped withdrawal transactions at 8:15 PM on Nov. 10.
Despite receiving messages from the platform’s app stating that the transfers had been completed, the customers were unable to get their hands on their funds. A dispute then ensued over who has rights to the crypto assets.
A new Bloomberg article reports that U.S. Bankruptcy Judge Michael Kaplan has just ruled in favor of BlockFi. In a court hearing on Thursday, Kaplan ruled that the company’s app notifications were false.
Says Kaplan, according to Bloomberg,
“The user interface did not accurately reflect the transactions.”
Court documents show that approximately $292 million in assets were tied up on the platform as a result of clients attempting to move their assets after the withdrawal freeze. Kaplan ruled that the company can now cancel these transactions.
Don’t Miss Out – Subscribe to receive crypto email alerts delivered straight to your inbox
Check price action
follow us on TwitterFacebook and Telegram
Surf the Daily Hodl mix
Image generated: Midway through the journey
