BlockFi Moves to Close Web Platform: Partners with Coinbase for Customer Fund Withdrawals
BlockFi, a centralized crypto lender, has recently made the decision to shut down its web platform and has selected Coinbase as its exclusive partner for customer fund withdrawals. This move comes as BlockFi aims to ensure a smooth transition for eligible customers following the closure of its platform.
BlockFi Announces Exclusive Partnership with Coinbase
According to a press release issued by BlockFi, eligible clients will soon have the option to access their crypto withdrawals via Coinbase post the withdrawal request deadline of April 28, 2024.
- Crypto-eligible customers who failed to meet the withdrawal deadline or complete identity verification by May 10 will have their assets available for withdrawal in kind if they 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.
BlockFi will be working exclusively with Coinbase for crypto distributions and has advised clients to be cautious of potential scams from unauthorized parties targeting BlockFi clients.
BlockFi Web Platform Closure and Data Preservation
Furthermore, the BlockFi web platform will be permanently closed in May 2024, with the exact date communicated separately to clients in the upcoming weeks.
- BlockFi is urging all clients to download their transaction history, tax forms, and other essential data from the platform before the shutdown date to ensure preservation.
Distributions Initiated for Wallet Holders
The decision to close the web platform follows BlockFi’s filing for Chapter 11 bankruptcy protection in the US District of New Jersey due to challenges arising from the collapse of the Three Arrows Capital (3AC) hedge fund, which affected its operations.
- BlockFi has been actively working to recover funds from FTX and other counterparties, including reaching agreements with the bankrupt crypto exchange and Alameda Research estates to settle significant claims.
Recovery Efforts and Client Support
Founder Zac Prince has emphasized BlockFi’s focus on recovering maximum value for its clients despite the bankruptcy proceedings.
- Distributions have already begun for BlockFi wallet account holders, with interest account clients set to receive distributions once funds are recovered from the FTX estate.
- With ongoing estate distributions and positive trends in FTX estate recoveries, Prince expresses readiness to move on to new professional endeavors.
- Prince relinquished recovery rights for his personal crypto at the company to enhance the recovery pool for clients and has committed to providing ongoing unpaid cooperation for the BlockFi estate.
Hot Take: Closing Thoughts for Crypto Enthusiasts
BlockFi’s decision to partner with Coinbase for customer fund withdrawals signifies a strategic move by the centralized crypto lender to ensure a seamless transition for its clients following the closure of its web platform.
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