BlockFi Announces Crypto Repayment Process
Bankrupt crypto lending platform BlockFi recently revealed plans to begin repaying customers who missed the withdrawal process through the platform starting this month. The company’s partnership with crypto exchange Coinbase will facilitate these interim crypto distributions after the web platform’s closure in May.
First Interim Distributions Initiated
The shutdown of BlockFi’s web platform in May also marked the initiation of its distribution partnership with Coinbase for client fund withdrawals. The partnership aimed to provide access to crypto withdrawals via Coinbase for eligible users who failed to meet the withdrawal deadline of April 28.
- On July 17, BlockFi announced the commencement of the first interim crypto distributions through Coinbase this month.
- Customers meeting specific criteria would receive repayments through this distribution partner.
Criteria for Eligibility
The eligibility criteria for the interim crypto distributions include users who did not receive the first distribution before the platform’s shutdown and customers entitled to additional crypto distribution. However, customers outside the US will experience a delayed distribution due to regulatory requirements concerning non-US clients.
- The Plan Administrator is collaborating with the Joint Liquidators of BlockFi International to ensure regulatory compliance for non-US clients in Bermuda.
- Customers will be notified via their BlockFi account email about the distribution batches being processed in the upcoming months.
Notification from Coinbase
BlockFi users recently received notifications from Coinbase, communicating a successful match of identifying information with the crypto lending platform’s data. Several customers expressed excitement over this repayment development, while others remained cautious about the distribution process.
- Some users in a dedicated subreddit shared their expectations and concerns regarding the distribution timeframe.
- The platform urged users to remain vigilant against phishing scams and emphasized communication through official channels only.
Chapter 11 Bankruptcy Filing
Upon the impact of the collapse of Three Arrows Capital and FTX, BlockFi filed for Chapter 11 bankruptcy protection in the US District of New Jersey on November 22. The platform reported significant creditor liabilities, including the US Securities and Exchange Commission, with millions in unsecured claims.
- Before the bankruptcy filing, BlockFi resolved disputes with FTX and Alameda Research, settling claims amounting to nearly $1 billion.
Hot Take: BlockFi Ensures Crypto Repayments with Coinbase
Bankrupt crypto lending platform BlockFi recently announced that repayments for customers who didn’t complete the withdrawal process through the platform will begin this month. Following the web platform’s shutdown in May, the interim crypto distributions will also be made through its partnership with crypto exchange Coinbase.
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