Bankrupt Crypto Lender BlockFi to Initiate Temporary Distribution via Coinbase in July
Bankrupt crypto lending platform BlockFi is set to commence its first temporary distribution of crypto assets through Coinbase starting in July.
In a recent post on X, the firm said eligible account holders can expect to receive email notifications regarding the distribution, which will take place in batches over the coming months.
However, it is important to note that non-US customers will not receive any funds due to regulatory constraints.
In May, BlockFi announced a partnership with Coinbase to ensure the continuity of crypto withdrawals for eligible BlockFi Interest Account (BIA), Retail Loan, and Private Clients.
As the initial window for requesting a withdrawal of estate funds using BlockFi has closed, the platform is now working with Coinbase to facilitate the next steps.
BlockFi will provide clients with further details via email, including instructions on how to create a Coinbase account.
For those who missed the withdrawal deadline of April 28 or failed to complete identity verification by May 10, there is still an opportunity to receive funds.
These assets will be made available in kind if the individual has an open and approved Coinbase account.
However, if an approved Coinbase account is not created, the assets may be converted to cash and distributed accordingly, as outlined in the plan.
To facilitate future distributions, including those based on funds recovered from FTX, the Plan Administrator will utilize Coinbase as the platform of choice.
Without this partnership, the Administrator would only be able to distribute cash in subsequent rounds.
Clients who are unable to open a Coinbase account will receive their distributions in cash.
Please find all the information related to Coinbase distribution on the Coinbase
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