BlockFi's custodial wallet users may receive a repayment of $300 million from the bankrupt digital asset lender, as a New Jersey judge ruled that the assets locked in BlockFi’s custodial accounts belong to clients rather than the company’s estate. However, the judge also ruled that another $375 million that users sought to transfer from interest-bearing accounts following November’s withdrawal suspension still belong to BlockFi. The judge spared custodial wallet holders from the same fate as BlockFi's interest-bearing account (BIA) customers, who risk losing their investment to the company's creditors. The bankruptcy laws support the immediate return of funds belonging to customers rather than having said funds divided up among the company’s estate’s creditors.
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