BlockFi Reorganizes: Crypto Distributions Move to Coinbase

In a move to aid remaining customers, bankrupt crypto lender BlockFi has announced a partnership with Coinbase to facilitate crypto distributions for eligible users. This applies to those holding BlockFi Interest Accounts (BIAs), Retail Loans, and Private Client accounts.

The news comes after the April 28th, 2024 deadline to withdraw crypto directly from the BlockFi platform passed. However, for those who missed the window, there's a solution.

BlockFi will be reaching out to qualified clients via email with instructions on setting up a Coinbase account, if they haven't already. This partnership is crucial as it allows crypto-eligible clients who missed the BlockFi deadline to receive their holdings in crypto through Coinbase. The key takeaway: a created or existing, approved Coinbase account is essential.

For those who miss both deadlines, both the BlockFi withdrawal and the Coinbase account creation, their crypto will likely be converted to cash for distribution as per the bankruptcy plan.

The partnership with Coinbase is significant because it allows BlockFi to distribute crypto directly, not just cash. This extends to potential future distributions, including recoveries from the collapsed FTX and Alameda Research.

In a separate announcement, BlockFi confirmed the closure of its web platform sometime in May 2024. The exact date is still being determined, but clients are urged to download their transaction history, tax documents, and any other important data before the platform goes offline. Specific communication regarding the shutdown date is expected soon.

BlockFi emphasizes they are not partnering with any other providers for crypto distributions, urging users to be vigilant of potential scams targeting BlockFi clients.

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