BlockFi set to open customer withdrawals in summer

The lender said it needs to develop new product features and make platform modifications to facilitate withdrawals

article-image

Formatoriginal/Shutterstock, modified by Blockworks

share

Bankrupt crypto lender BlockFi expects to grant customer withdrawals this summer upon the successful completion of essential testing to verify accurate account balances.

In an email sent on Monday, customers were informed that BlockFi received court approval on May 17 to update user interfaces. This is a necessary step to make it easier for clients to withdraw their funds, the firm added.

The digital assets contained within the custodial omnibus wallets, as of the platform pause, do not belong to BlockFi, Judge Michael Kaplan said in the May court order.

“BlockFi needs to build new product functionality and make changes to the platform in order to process these withdrawals,” the lender said, according to screenshots of the email posted to Twitter.

“We anticipate that this work and the necessary testing will be completed by this summer. At that time, we will be in a position to begin making distributions to clients.”

Blockworks has reached out to BlockFi for comment on the timeline.

BlockFi will implement batch withdrawals

The company also announced that clients will be able to move their digital assets from their BlockFi wallets to external wallets, but cash distributions will not be supported. 

It plans to start allowing withdrawals from BlockFi wallet accounts for assets that are not at risk of potential preference claims, or demands made by specific creditors who seek to be repaid before others.

Withdrawals will be processed in batches, and users can expect to receive an email as soon as they become eligible to start withdrawing their funds.

During this time, users are encouraged to set up an external wallet, as it will be necessary to facilitate a smooth withdrawal from BlockFi.

Deadline to develop exit plan extended

BlockFi halted withdrawals in November, merely two days after assuring users of its full operational status. The company attributed this action to the uncertainties arising from the downward spiral of Alameda Research and FTX, which had earlier agreed to extend a credit facility to the lender.

This week, BlockFi was given more time to come up with a bankruptcy exit plan. The deadline has been pushed to July 6 due to a disagreement with the unsecured creditors committee.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

Blockworks and Cracked Labs are teaming up for the third installment of the Permissionless Hackathon, happening June 22–23, 2025 in Brooklyn, NY. This is a 36-hour IRL builder sprint where developers, designers, and creatives ship real projects solving real problems across […]

recent research

Research Report Templates (19).png

Research

Suilend has grown into the top money market and liquid staking provider on Sui. STEAMM, Suilend’s Superfluid AMM, presents a compelling avenue for growing market share within Sui’s DEX landscape and revenue generation for the protocol. Suilend’s multi-product suite position it well for owning market share across key verticals. While current metrics across the Sui ecosystem are likely inflated due to Sui Foundation incentive programs, SEND trades at amongst the lowest multiples in the lend/borrow sector, suggesting that a bull case for continued growth in the ecosystem may be mispriced.

article-image

Decentralized money was a “very unpopular goal” when concepts were proposed in the ’90s, said Nick Szabo

article-image

Cove aims to deliver “risk-adjusted yield” through curated DeFi vaults

article-image

The best capital markets are open to the most people — and crypto capital markets are open to everyone

article-image

Post-conference musings on Firedancer, Kraken, Solana Mobile and Trump

article-image

Executives expect others to follow SharpLink Gaming’s lead in purchasing an asset that has surged this past month

article-image

After a weekend of tariff policy shifts, investors appear confident that trade deals are underway