BlockFi Approved to Abandon Remaining Customer, Business Data

Former cryptocurrency lender BlockFi Inc. won approval to abandon and dispose of remaining corporate and customer data as part of its bankruptcy wind down, overcoming an objection from a concerned customer.

BlockFi has demonstrated it has little need to continue preserving sensitive company data because it presents a cost burden to the company’s bankruptcy estate and no longer has significant value, Judge Michael B. Kaplan of the US Bankruptcy Court for the District of New Jersey said in a ruling Tuesday.

“Continued retention of the Data Inventory would necessitate hiring a data custodian and secure storage/security capacities,” the judge said. ...