BlockFi Implements New Withdrawal Process with Coinbase

BlockFi, the centralized crypto lending platform, has made significant changes by closing its website and partnering with Coinbase for customer fund withdrawals. The decision is aimed at facilitating a seamless transition for eligible clients as the platform shuts down.

Transition to Coinbase

Eligible BlockFi customers can now withdraw their crypto assets through Coinbase following a withdrawal request deadline of April 28, 2024, as stated in the company’s press release.

Blockfi Implements New Withdrawal Process With Coinbase

If customers missed the deadline or failed to complete identity verification by May 10, their assets will be available for withdrawal through Coinbase. Those who do not have a Coinbase account can expect their assets to be liquidated to cash.

It is important to note that BlockFi will only work with Coinbase for crypto distributions and cautions clients against potential scams from third parties posing as BlockFi representatives.

Additionally, BlockFi’s web platform will be permanently closed in May 2024, with specific details to be communicated to clients in the coming weeks. Users are advised to download important data from the platform before the shutdown.

Efforts Towards Fund Recovery

BlockFi’s decision to close its website follows its filing for Chapter 11 bankruptcy in the US District of New Jersey, a result of issues related to the collapse of the Three Arrows Capital hedge fund affecting its operations.

The company is actively working on fund recovery efforts through agreements with FTX, Alameda Research estates, and other counterparties to settle significant claims.

Founder Zac Prince emphasizes BlockFi’s commitment to maximizing value for its clients amidst the bankruptcy proceedings. Distributions have started for BlockFi wallet holders, with interest account clients set to receive distributions upon fund recovery from the FTX estate.

As estate distributions progress and FTX recoveries show positive signs, Zac Prince expresses readiness to pursue new ventures following substantial personal contributions to support client recovery efforts and the BlockFi estate.

Image source: Shutterstock, chart from TradingView.com

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