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 <p class="is-style-lead">BlockFi, the now-defunct crypto lending company, has filed a court application to move “<a rel="dofollow" title="trade-" href="https://thebittimes.com/tag/trade.html">trade-</a>only” assets from users’ accounts to <a rel="dofollow" title="stablecoin" href="https://thebittimes.com/tag/stablecoin.html">stablecoin</a>s.</p> 
 <p>This move follows the company’s ongoing efforts initiated in August to return users’ funds after previously closing withdrawals.</p> 
 <p>BlockFi&nbsp;filed an application&nbsp;on Aug. 29 to the United States Bankruptcy Court for the District of New Jersey to authorize the conversion of <a rel="dofollow" title="trade-" href="https://thebittimes.com/tag/trade.html">trade-</a>only assets into <a rel="dofollow" title="stablecoin" href="https://thebittimes.com/tag/stablecoin.html">stablecoin</a>s, including Algorand’s native <a rel="dofollow" title="token" href="https://thebittimes.com/tag/token.html">token</a> (ALGO), Bitcoin Cash (BCH),&nbsp;and Dogecoin (DOGE).&nbsp;</p> 
 <p>Since these assets can’t be withdrawn easily, BlockFi is proposing a one-time exchange for Gemini Dollar (GSD) or a similar stablecoin. However, it is worth noting that this suggestion comes separate from the other trade-only assets that were available on the platform, including Cardano (ADA), Solana (SOL) and Avalanche (AVAX), which are held by BlockFi International.</p> 
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  </svg> <span class="cn-block-related-link__prefix"> You might also like: </span> BlockFi battles FTX, 3AC in court over repayment claims 
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 <p>The application goes on to state that <a rel="dofollow" title="trade-" href="https://thebittimes.com/tag/trade.html">trade-</a>only assets currently do not exceed 0.5% of US wallet assets held by BlockFi users.&nbsp;&nbsp;</p> 
 <p>Last year, BlockFi became one of several companies that sought Chapter 11 bankruptcy protection in the US, along with FTX, Celsius Network and Voyager Digital. </p> 
 <p>In November 2022,&nbsp;the platform temporarily stopped clients from withdrawing funds, with estimates suggested that BlockFi owed up to&nbsp;$10 billion&nbsp;to over 100,000 clients, including $1 billion to its three largest creditors.</p> 
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  <div class="wp-block-embed__wrapper"> <iframe title="Blockfi Bankruptcy Adds to Crypto Tension" width="1020" height="574" src="https://www.youtube.com/embed/4BnaFRni6RU?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen></iframe> 
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 <p>On Aug. 16, the court authorized the company to open withdrawals&nbsp;nine months&nbsp;later. However, the timeline for international users remains uncertain due to ongoing legal proceedings, which could potentially change the situation.</p> 
 <p>Therefore, much of the community remains on watch as developments in the case unfold.</p> 
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  <svg class="cn-block-related-link__icon icon" aria-hidden="true"> <use xlink:href="#"></use> 
  </svg> <span class="cn-block-related-link__prefix"> Read more: </span> US BlockFi clients free to withdraw funds after court order 
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<p>Source: <a rel="dofollow" target="_blank" href="https://thebittimes.com/bankrupt-lender-blockfi-files-to-convert-trade-only-tokens-into-stablecoins-tbt60993.html">https://thebittimes.com/bankrupt-lender-blockfi-files-to-convert-trade-only-tokens-into-stablecoins-tbt60993.html</a></p>

Bankrupt lender, BlockFi, files to convert “trade-only” tokens into stablecoins

TheBitTimes

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