Bankrupt BlockFi proposes client asset conversion into stablecoins for trade-only wallets

Cryptocurrency lender BlockFi has filed a proposed court order seeking approval to convert certain client assets into withdrawable funds as part of its ongoing bankruptcy proceedings.

The company applied to bankruptcy court on Aug. 30, requesting authorization to exchange limited cryptocurrency holdings known as “trade only” assets into stablecoins. According to the filing, the trade-only assets comprise less than half a percent of all client funds BlockFi holds, including Algorand, Bitcoin Cash, and Dogecoin.