BlockFi, a crypto lender, recently announced that it will be closing its web platform and partnering with Coinbase to distribute funds to clients. The New Jersey-based company filed for bankruptcy in November 2022 after FTX’s collapse and CEO Zac Prince testified that the actions of FTX founder Sam Bankman-Fried directly led to BlockFi’s bankruptcy. In an effort to return customers’ crypto holdings, BlockFi is working with Coinbase to allow eligible clients to withdraw their digital assets.
Customers who missed BlockFi’s withdrawal deadline still have the option to recover their crypto holdings. The deadline for most customers to request withdrawals was April 28, 2024, but those who missed it 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 accordingly. The company is giving clients another chance to withdraw from the BlockFi platform before it closes.
As BlockFi prepares to close its web platform, the company is advising customers to download any important documents they may need before the shutdown occurs. The plan administrator will be using Coinbase for upcoming distribution rounds, which may involve distributions from recovered funds from FTX. BlockFi has stated that it does not plan to collaborate with any additional providers for cryptocurrency distributions, and investors should remain cautious of potential scam attempts from third-party entities.
It is important for customers to retrieve their transaction history, tax documents, and any other pertinent information from BlockFi before the platform closure. BlockFi has been targeted by fraudulent activity in the past, where claimants received deceptive emails promising immediate withdrawals of their remaining balances. By downloading important documents and taking necessary precautions, customers can ensure a smooth transition during the platform closure.
BlockFi’s partnership with Coinbase will allow eligible clients to withdraw their crypto holdings, even if they missed the withdrawal deadline. By setting up a Coinbase account, clients can access their digital assets and avoid having their assets liquidated into cash. The company is working to facilitate the distribution of funds through Coinbase for upcoming rounds, ensuring that customers can recover their crypto holdings in a secure and efficient manner.
Despite the challenges faced by BlockFi, the company is taking steps to ensure that customers have the opportunity to recover their crypto holdings before the platform closure. By partnering with Coinbase and providing instructions for setting up accounts, BlockFi is working to facilitate a smooth transition for clients. By downloading important documents and remaining vigilant against potential scams, customers can navigate the platform closure with confidence and ensure that they can access their digital assets.
