BlockFi, a crypto lender, recently announced its plans to close its web platform and partner with Coinbase to distribute funds to clients. The New Jersey-based firm, which filed for bankruptcy in November 2022 after FTX’s collapse, is working with Coinbase to allow eligible clients to withdraw their crypto holdings. The CEO of BlockFi, Zac Prince, claims that the actions of FTX founder directly caused the company’s bankruptcy.
In 2023, BlockFi revealed that it would be shutting down and returning customers’ crypto holdings. The deadline for most customers to request withdrawals was April 28, 2024. Clients who missed this deadline can still set up a Coinbase account to withdraw their digital assets. If they do not establish an approved Coinbase account, their assets may be liquidated into cash and distributed to them accordingly. BlockFi is providing another opportunity for those who missed the withdrawal deadline to withdraw from its platform.
The plan administrator for BlockFi will utilize Coinbase for upcoming distribution rounds, potentially involving distributions from recovered funds from FTX. Without this capability, the administrator would be limited to distributing cash for subsequent distributions. BlockFi has stated that it does not plan to collaborate with any additional providers for cryptocurrency distributions to avoid potential scam attempts from third-party entities. Customers are advised to be cautious of fraudulent activities and retrieve their transaction history, tax documents, and any other relevant information from BlockFi before the platform closure occurs.
BlockFi emphasized the importance of customers downloading important documents before the platform closure and encouraged them to set up a Coinbase account to withdraw their digital assets. The company is providing guidance to clients on how to establish an approved Coinbase account to facilitate the withdrawal process. BlockFi has a history of being targeted by fraudulent activities, prompting the company to caution investors against potential scam attempts from third-party entities. The partnership with Coinbase aims to ensure a secure and efficient distribution of funds to BlockFi clients.
