BlockFi Closes Web Platform, Teams Up with Coinbase for Crypto Withdrawals

BlockFi Announces Closure of Web Platform

Embattled crypto lender BlockFi has revealed its plans to close its web platform this month. The New Jersey-based firm is set to partner with Coinbase to facilitate the distribution of funds to its clients.

Partnership with Coinbase for Fund Distribution

BlockFi’s partnership with Coinbase will enable eligible clients, including BlockFi Interest Account, Retail Loan, and Private Clients, to withdraw their crypto holdings.

Background on BlockFi’s Bankruptcy

BlockFi filed for bankruptcy in November 2022 following the collapse of FTX. CEO Zac Prince attributed the bankruptcy to the actions of FTX founder, Bankman-Fried, for which he testified as a government witness in a criminal trial.

Recovery Options for Clients

For clients who missed the withdrawal deadline, BlockFi is providing alternative recovery options. Those who did not withdraw their digital assets in time will receive instructions on setting up a Coinbase account to facilitate the withdrawal process.

Clients who fail to establish an approved Coinbase account may have their assets liquidated into cash and distributed accordingly.

Important Instructions for Clients

BlockFi advises customers to download important documents before the platform closure. This includes transaction history, tax documents, and any other relevant information.

Future Distribution Rounds

The plan administrator will utilize Coinbase for upcoming distribution rounds, potentially involving recovered funds from FTX. This approach allows for more efficient distributions compared to cash disbursements.

Caution Against Scam Attempts

BlockFi warns customers against potential scam attempts from third-party entities. The company does not intend to collaborate with additional providers for cryptocurrency distributions and urges investors to remain vigilant.

Customers are reminded of past fraudulent activities targeting BlockFi claimants through deceptive emails promising immediate withdrawals of remaining balances.