BlockFi, a crypto lender, is set to close its web platform this month and has partnered with Coinbase to help distribute funds to clients affected by the closure. The New Jersey-based company filed for bankruptcy in 2022 after the collapse of FTX. CEO Zac Prince attributes the bankruptcy to the actions of FTX founder Bankman-Fried. The company had previously announced plans to return customers’ crypto holdings in 2023, with a deadline for withdrawal set for April 28, 2024.
Customers who missed the withdrawal deadline are still able to access their digital assets through a Coinbase account. BlockFi is providing instructions for setting up an account with Coinbase for those who missed the initial deadline. Clients who do not establish an approved Coinbase account may have their assets liquidated into cash and distributed accordingly. The plan administrator will use Coinbase for upcoming distribution rounds, including distributions from recovered funds from FTX.
BlockFi has warned customers to be cautious of potential scam attempts from third-party entities, as the company does not plan to collaborate with any additional providers for cryptocurrency distributions. The company has been the target of fraudulent activity in the past, with claimants receiving deceptive emails promising immediate withdrawals of their balances. Customers are advised to download important documents such as transaction history and tax documents before the platform closure.
In a strategic move, BlockFi has teamed up with Coinbase to facilitate the distribution of funds to clients affected by the closure of its web platform. The company filed for bankruptcy in 2022 after FTX’s collapse, leading to CEO Zac Prince attributing the bankruptcy to the actions of FTX founder Bankman-Fried. Following an announcement in 2023 regarding the return of customers’ crypto holdings, BlockFi set a deadline for withdrawals on April 28, 2024.
For customers who missed the withdrawal deadline, BlockFi is providing an opportunity to still access their digital assets through an approved Coinbase account. Instructions will be given to those who need to set up a Coinbase account to withdraw their assets. Alternatively, customers who do not establish a Coinbase account may have their assets liquidated into cash and distributed accordingly. The plan administrator will utilize Coinbase for upcoming distribution rounds, including distributions from recovered funds from FTX.
As BlockFi prepares to close its web platform, customers are advised to take caution against potential scam attempts from third-party entities, as the company has no plans to collaborate with additional providers for cryptocurrency distributions. To ensure a smooth transition, customers are encouraged to download important documents such as transaction history and tax documents before the platform closure occurs. By partnering with Coinbase, BlockFi aims to facilitate a seamless process for customers to access their funds and assets during this transition period.
