10 May

Struggling crypto lender BlockFi revealed on Thursday its intention to shut down its web platform this month and has forged a partnership with Coinbase to facilitate the distribution of funds to its clients.

The New Jersey-headquartered company stated that through its collaboration with Coinbase, eligible clients holding BlockFi Interest Accounts, Retail Loans, and Private Accounts will be able to withdraw their cryptocurrency holdings.

BlockFi faced financial challenges and filed for bankruptcy in November 2022 following the collapse of FTX. CEO Zac Prince, who testified as a government witness in Bankman-Fried's criminal trial, attributes BlockFi's bankruptcy directly to the actions of the FTX founder.

The BlockFi Withdrawal Deadline has passed. You Can Still Get Your Coins Back

In 2023, BlockFi made public its decision to close down and initiated plans to return customers' cryptocurrency holdings. The deadline for most customers to request withdrawals was April 28, 2024.

Recently, BlockFi informed its clients that since the deadline for withdrawing their digital assets from the current estate distribution has passed, they will receive guidance on how to create a Coinbase account. Through this process, clients can withdraw their digital assets if they possess an existing or newly approved Coinbase account.

Additionally, the company is extending another opportunity to those who missed the withdrawal deadline. They will still have the option to withdraw from BlockFi's platform. Clients who do not establish an approved Coinbase account may have their assets liquidated into cash and distributed to them accordingly. 

Before the platform ends, BlockFi urges users to download key documents

The plan administrator will be authorized to utilize Coinbase for upcoming distribution rounds, which could involve disbursing funds recovered from FTX. Without this option, the administrator would be constrained to distributing cash for subsequent distributions.

BlockFi stated its intention not to engage with any additional providers for cryptocurrency distributions. Consequently, it warned investors to remain vigilant against potential scam attempts from third-party entities. BlockFi has previously fallen victim to fraudulent activity, wherein claimants received deceptive emails resembling authentic communications, falsely promising immediate withdrawals of their remaining balances.

Customers were also advised to retrieve their transaction history, tax documents, and any other relevant information from BlockFi before the shutdown occurs.

May 2024, Cryptoniteuae

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