- BlockFi to start interim crypto distributions via Coinbase in July 2024.
- Non-US clients are currently ineligible for distributions due to regulatory constraints.
- Future distributions will be managed through Coinbase.
Bankrupt cryptocurrency lender BlockFi is set to begin returning funds to its customers this month, utilizing Coinbase as the distribution platform.
This long-awaited development comes after BlockFi’s operations were suspended in May following the collapse of FTX, leading to a bankruptcy filing and a subsequent partnership with Coinbase to facilitate the return of customer assets.
With the funds request window now closed, BlockFi is collaborating with Coinbase to manage the next steps. The exchange stated:
“As described in our previously announced Coinbase distribution partnership blog post, BlockFi will commence first interim crypto distributions through Coinbase in July 2024,”
According to BlockFi, the funds will be disbursed in batches over the coming months. Eligible customers will receive notification via the email address associated with their BlockFi account, including detailed instructions on how to create a Coinbase account. However, non-U.S. clients are currently unable to receive funds due to regulatory constraints.
The former crypto lender added that customers who missed the April 28 deadline or May 10 identity verification date can still access their funds through an approved Coinbase account. Clients unable to open a Coinbase account will receive cash distributions.
Furthermore, future distributions, including those based on funds recovered from FTX, will also be managed through Coinbase. Without this partnership, the Plan Administrator would only distribute cash in future rounds.
Meanwhile, BlockFi warns clients to beware of scams from third-party actors pretending to offer crypto distributions. The company emphasizes that it will not partner with any other providers for these distributions.
In November 2022, BlockFi declared bankruptcy following FTX’s collapse. The following year, the company announced its closure and outlined plans to return customers’ crypto holdings, setting a withdrawal request deadline of April 28, 2024. On May 9, BlockFi informed clients that because the deadline had passed, they would receive instructions on setting up a Coinbase account for asset withdrawals.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
