BlockFi Seeks Court Permission To Convert Trade Only Assets
BlockFi, a bankrupt lender of digital assets, has submitted a court petition asking for authorization to convert its users’ Trade Only assets to stablecoins, enabling the withdrawal of these tokens. This change represents the business’ most recent endeavour to pay back its creditors.
The Trade-Only assets are not withdrawable tokens using standard wallet withdrawal procedures, according to BlockFi’s appeal. These coins include Algorand (ALGO), Bitcoin Cash (CASH), and Dogecoin (DOGE) in the platform’s US market.
On the BlockFi global platform, however, the Trade Only assets include, among others, Cardano (ADA), Cosmos (ATOM), Avalanche (AVAX), and Solana (SOL).
BlockFi claims that US customer wallets account for only 0.5% of Trade Only assets, with most belonging to its foreign wing customers. The defunct crypto lender proposes a one-time swap of Trade Only assets for stablecoins like Gemini Dollar (GUSD), then transfer them to BitGo for customer withdrawal. This move aims to improve integration between the two companies and facilitate the transfer of Trade Only assets to BitGo.
(With inputs from Shikha Singh)
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