Bankrupt
crypto
lending
platform
BlockFi
recently
announced
that
repayments
for
customers
who
didn’t
complete
the
withdrawal
process
through
the
platform
will
begin
this
month.
Following
the
web
platform’s
shutdown
in
May,
the
interim
crypto
distributions
will
also
be
made
through
its
partnership
with
crypto
exchange
Coinbase.
BlockFi
Announces
First
Interim
Crypto
Distributions
In
May,
BlockFi
announced
the
shutdown
of
its
web
platform
at
the
end
of
the
month.
The
crypto
lending
company
also
revealed
its
distribution
partnership
with
crypto
exchange
Coinbase
for
client
fund
withdrawals.
Through
the
partnership,
the
eligible
users
who
missed
the
withdrawal
deadline
of
April
28
would
have
access
to
their
crypto
withdrawals
via
Coinbase.
On
July
17,
the
lending
platform
revealed
on
X
that
the
first
interim
crypto
distributions
will
begin
this
month
through
Coinbase.
Per
the
announcement,
customers
who
met
certain
criteria
would
receive
repayments
through
the
distribution
partner.
First interim crypto distribution announced. source: BlockFi on X
The
criteria
included
crypto-eligible
users
who
didn’t
receive
the
first
interim
distribution
before
the
BlockFi
system’s
shutdown
and
customers
eligible
for
additional
crypto
distribution.
Eligible
users
outside
of
the
US
will
not
receive
funds
simultaneously.
BlockFi
cited
“regulatory
requirements”
applicable
to
non-US
clients
as
the
reason
for
the
delay.
However,
it
assured
that
“The
Plan
Administrator
has
been
working
tirelessly
with
the
Joint
Liquidators
of
BlockFi
International
to
implement
a
distribution
process
for
non-US
Clients
that
complies
with
Bermuda
regulation.”
The
crypto
lending
platform
detailed
that
the
distributions
will
be
processed
in
batches
in
the
coming
months,
and
customers
will
receive
a
notification
to
the
BlockFi
account
email
on
file.
Additionally,
it
explained
that
users
who
did
not
complete
the
identity
verification
process
by
the
May
10
deadline
can
withdraw
their
assets
via
Coinbase
if
they
create
or
already
have
an
approved
account
in
the
crypto
exchange.
Users
who
opt
out
of
an
approved
account
by
Coinbase
will
receive
their
distribution
in
cash.
Eligible
Users
Receive
Coinbase
Notification
BlockFi
users
reported
receiving
Coinbase
notifications
on
Thursday.
In
the
subreddit
dedicated
to
the
crypto
lending
platforms,
customers
shared
emails
informing
them
the
identifying
information
on
Coinbase
successfully
matched
the
crypto
lending
platform’s
data.
Several
clients
expressed
excitement
and
claimed
the
repayment
development
was
“very
good
news.”
Nonetheless,
some
customers
shared
some
skeptical
comments
regarding
the
distribution
state.
Customers begin receiving Coinbase emails. Source: r/blockfi
One
Reddit
user
claimed,
“It’s
still
all
talk
with
BF/Kroll”
until
they
see
the
money
in
their
Coinbase
account.
Another
Redditor
pointed
out
the
time
they
have
waited,
stating
that
they
“expect
to
see
a
deposit
on
or
about
December
13,
2028.”
As
the
first
round
of
emails
are
received,
the
crypto
lending
platform
urged
users
to
be
aware
of
phishing
scam
attempts.
They
warned
that
client
communication
exclusively
occurs
via
official
email
channels,
on
social
media,
via
our
claim’s
agent,
Kroll,
or
Kroll’s
claims
distribution
partner,
or
from
Coinbase.
On
November
22,
BlockFi
filed
for
Chapter
11
bankruptcy
protection
in
the
US
District
of
New
Jersey
after
being
impacted
by
the
collapse
of
Three
Arrows
Capital
(3AC)
and
FTX.
At
the
time,
the
platform
stated
it
had
$257
million
in
cash
and
over
100,000
creditors
with
hundreds
of
millions
in
unsecured
claims.
Among
the
list,
the
US
Securities
and
Exchange
Commission
was
included
as
a
creditor
with
$30
million
in
unsecured
claims.
Earlier
this
year,
BlockFi
agreed
with
FTX
and
its
trading
arm,
Alameda
Research,
to
settle
claims
worth
nearly
$1
billion.
The
settlement
ensured
that
FTX
recognized
the
total
amount
owned.
Bitcoin (BTC) is trading at $64,760 in the weekly chart. Source: BTCUSDT on TradingView
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Author: Rubmar Garcia
