BlockFi, a centralized crypto lender, recently shut down its web platform and selected Coinbase as its distribution partner for customer fund withdrawals. The move comes as BlockFi aims to ensure a swift transition for eligible customers following the closure of its platform.
BlockFi Selects Coinbase As Exclusive Partner
According to the company’s press release on the matter, eligible BlockFi clients will have the option to access their crypto withdrawals via Coinbase after the withdrawal request deadline of April 28, 2024.
Crypto-eligible customers who missed the withdrawal deadline or did not complete an identity verification request by Friday, May 10, will have their assets made available for withdrawal in kind if they create or already have an open and approved Coinbase account. If clients choose not to create an approved Coinbase account, their in-kind distribution may be liquidated to cash as planned.
It should be noted that the crypto lender will exclusively collaborate with Coinbase for crypto distributions and advises clients to remain cautious of potential scams from unauthorized third parties targeting BlockFi clients.
Furthermore, the BlockFi web platform will be permanently shut down in May 2024. The exact date will be communicated separately to clients in the upcoming weeks.
To ensure the preservation of their transaction history, tax forms, and other important data, BlockFi encourages all clients to download the required information from the platform before the shutdown date.
Distributions Underway For Wallet Holders
BlockFi’s decision to shut down its web platform follows its filing for Chapter 11 bankruptcy protection in the US District of New Jersey. The company faced challenges due to the collapse of the Three Arrows Capital (3AC) hedge fund, which impacted its operations.
However, BlockFi has been actively working to recover funds from FTX and other counterparties, including reaching an agreement with the bankrupt crypto exchange and Alameda Research estates to settle substantial claims.
According to the crypto lender’s founder Zac Prince, BlockFi’s focus remains on recovering as much value as possible for its clients despite the bankruptcy proceedings.
Prince suggests that distributions have already occurred for BlockFi wallet account holders, with interest account clients expected to receive distributions once funds are recovered from the FTX estate.
With the ongoing estate distributions and positive trends in FTX estate recoveries, the lender’s founder has expressed a sense of closure and is ready to embark on new professional endeavors.
Having kept a significant amount of personal crypto at the company, Prince states that he relinquished recovery rights to increase the recovery pool for clients and has committed to providing ongoing unpaid cooperation to support the BlockFi estate.
Featured image from Shutterstock, chart from TradingView.com
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