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 and 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 to the cryptocurrency stored therein remains 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, and users were then able to 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 that it held just 10% of customer funds in reserve, acting in a similar manner to a fractional reserve bank. 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.

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.

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Filed under: Bitcoin - @ December 20, 2022 4:30 pm