Bankrupt crypto lender BlockFi is seeking to reopen some customer withdrawals after halting them following FTX's collapse

• BlockFi is seeking bankruptcy court approval to allow customers to withdraw cryptocurrencies from its BlockFi Wallet product.
• The crypto lender had paused all activity on its platform after the collapse of FTX.

BlockFi, a crypto lender that filed for voluntary Chapter 11 bankruptcy after the implosion of FTX, is seeking court approval to allow customers to withdraw cryptocurrencies from certain accounts.

The platform aims to give clients access to their digital assets in its BlockFi Wallet product, according to a filing with the US Bankruptcy Court for the District of New Jersey.

"The Debtors have no legal or equitable interest in cryptocurrency that was present in the Wallet Accounts as of Platform Pause, and clients should be able to withdraw such assets from the platform if they choose," said the December 20 filing seeking to honor withdrawals from Wallet accounts.

The court will hold a hearing on the matter on January 9.

The request to the court does not specify access for clients to the company's flagship BlockFi Interest Account, which provided yield to customers who stored their crypto assets with the company.

The New Jersey-based platform in late November paused all activity as FTX collapsed following a liquidity crunch and allegations of misuse of FTX customer funds by the crypto exchange once run by Sam Bankman-Fried.

BlockFi sought bankruptcy protection as it had "significant exposure to FTX" and associated corporate entities.

Bankman-Fried faces multiple civil and criminal charges in the US, with US authorities seeking his extradition from the Bahamas.