TL;DR
- BlockFi is undergoing liquidation and restructuring after declaring bankruptcy in 2022 and has announced new measures.
- The strategic partnership with Coinbase will allow customers of the lending platform to access and withdraw funds efficiently. Deadline dates have been established.
- Those unable to open an account on the exchange will receive cash distributions. The company advises customers to download their transaction history and warns that it will only collaborate with the US-based exchange.
BlockFi, a lending and financial services platform in the crypto industry, has made key decisions for its liquidation and restructuring process. After declaring bankruptcy in November 2022 following FTX’s collapse, BlockFi has announced the closure of its web platform and a strategic partnership with Coinbase.
The collaboration with Coinbase represents a significant change for the lending company, as the platform was in the process of liquidating and returning assets to its customers. The partnership with the exchange will allow BlockFi’s customers to access and withdraw their funds more efficiently. Deadline dates have been indicated; those who have not withdrawn their digital assets by April 28, 2024, and have not completed identity verification by May 10, 2024, will have their assets available on Coinbase.
BlockFi is pleased to announce Coinbase as our distribution partner to ensure continuity of crypto withdrawals available to our eligible BlockFi Interest Account (BIA), Retail Loan, and Private clients.
— BlockFi (@BlockFi) May 9, 2024
To facilitate this transition, BlockFi will send detailed instructions to its customers on how to create an account on Coinbase. Those unable to open an account on the exchange will receive cash distributions instead of crypto assets. The firm encourages all its customers to download their transaction history and other relevant documents.
BlockFi Warns That It Will Only Collaborate with Coinbase
On the other hand, the closure of the web platform follows FTX’s announcement of its updated reimbursement plan, in which the lending platform is a “key player.” FTX, following the collapse in November 2022, has reached a settlement agreement with BlockFi, committing to an initial payment of $250 million as part of a broader $874 million agreement aimed at compensating the lending platform for assets held on the FTX platform and loans granted to Alameda Research.
Coinbase will handle future fund distributions, including funds recovered from FTX. BlockFi has made it clear that it does not intend to partner with any other platform to carry out cryptocurrency distributions, warning investors to remain cautious to avoid potential scams from external entities.
