Blockfi to Begin Interim Crypto Distributions via Coinbase

Crypto lender Blockfi announced on Wednesday via social media platform X that it will begin the first interim crypto distributions through crypto exchange Coinbase (Nasdaq: COIN) this month.

Crypto lender Blockfi announced Wednesday that it will begin the first interim crypto distributions through crypto exchange Coinbase (Nasdaq: COIN) this month.

The distributions are detailed in the firm’s May blog post, titled “Blockfi Web Platform Shut Down and Coinbase Distribution Partnership,” the crypto lender noted, adding:

“The distributions will be processed in batches in the coming months.”

Eligible clients will receive notifications via their Blockfi account email, the company stated. However, non-U.S. clients are currently unable to receive funds due to regulatory restrictions.

The crypto lender filed for Chapter 11 bankruptcy protection in November 2022 due to financial difficulties exacerbated by the collapse of cryptocurrency exchange FTX and broader market downturns. The company emerged from bankruptcy in October last year, after completing a recovery plan. This plan includes the distribution of client assets and repayment of creditors through a partnership with Coinbase.

Blockfi emphasized on X Wednesday that it is collaborating with Coinbase to maintain withdrawals for eligible Blockfi Interest Account, Retail Loan, and Private Clients.

The company explained that instructions for creating a Coinbase account will be provided to those eligible. Clients who missed the withdrawal deadline of April 28, 2024, or did not complete identity verification by May 10, 2024, can withdraw their assets if they have an approved Coinbase account. The plan also includes provisions for future distributions, including those recovered from FTX, and ensures cash distributions where crypto is not feasible.

What do you think about Blockfi’s distribution plan and its partnership with Coinbase? Let us know in the comments section below.