BlockFi Makes Significant Announcement Regarding Closure
On May 9, a well-known crypto lending platform, BlockFi, made a major announcement regarding the closure of its web platform. The platform has decided to partner with Coinbase, a prominent US-based crypto exchange, to oversee the management and distribution of assets. However, BlockFi has not yet specified a closing date for its web platform.
What Lies Ahead for BlockFi Customers?
For those who are users of BlockFi, the platform will be sending detailed instructions via email on how to set up a Coinbase account. This guidance is aimed at facilitating a smooth transition for users. Clients who did not withdraw their digital assets by April 28, 2024, at 23:59 UTC and failed to complete identity verification by May 10, 2024, at 23:59 UTC will find their assets available in kind at Coinbase.
- BlockFi will distribute assets at Coinbase for such clients unable to open a Coinbase account
“For BlockFi clients who are unable to open a Coinbase account, all distributions will be made in cash, pursuant to the provisions of the Plan that require cash distributions where crypto distributions are not feasible,” as per BlockFi.
In addition, BlockFi is urging all clients to download their transaction history and other relevant documents for their records.
- Plan Administrator can now opt for Coinbase for upcoming distributions
Furthermore, all future distributions, including those from any funds recovered from FTX, can now be conducted via Coinbase based on the latest developments.
FTX’s Updated Repayment Plan Reveals BlockFi as Key Stakeholder
Following the announcement of its updated repayment plan, FTX has identified BlockFi as a crucial stakeholder in the process. The repayment to BlockFi will be in accordance with a settlement that was previously approved. In March of this year, BlockFi reached a principal settlement with FTX and Alameda Research.
- $250 million payment pledged by FTX to BlockFi
As part of the larger $874 million settlement, FTX has committed to prioritizing a $250 million payment to BlockFi. This settlement is intended to compensate BlockFi for assets held on the FTX exchange and loans to Alameda Research.
The history of this settlement can be traced back to the intertwined relationship between BlockFi and FTX. Following the FTX incident in November 2022, BlockFi halted withdrawals for its customers’ funds.
The Impact of FTX’s Collapse on BlockFi
BlockFi has acknowledged that it was significantly impacted by the collapse of FTX. However, it is essential to note that BlockFi was FTX’s largest creditor. Despite the challenges faced, BlockFi is taking steps to navigate these developments.
- BlockFi was the biggest creditor of FTX
Closing Thoughts
In conclusion, the recent announcement from BlockFi regarding the closure of its web platform and partnership with Coinbase signifies a significant shift for the platform. Users should take note of the instructions provided to ensure a smooth transition to Coinbase for their assets.
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