BlockFi to Close Web Platform

BlockFi, a recently declared bankrupt cryptocurrency lending firm, announced it would shut down its web operations by May's end and partner with Coinbase for fund distributions. This partnership aims to facilitate withdrawals for BlockFi Interest Accounts, Retail Loans, and Private Client services holders during the bankruptcy proceedings.

Crypto holders eligible with BlockFi must have either an active or approved Coinbase account by late April or must have completed identity verification by May 10 to access their funds in cryptocurrency. Those without access to Coinbase will receive cash distributions. BlockFi stressed it has no other crypto firm partnerships for distributions and cautioned against scam attempts claiming otherwise.

BlockFi and Coinbase will directly communicate with registered users to provide specific instructions about the distribution process. Future distributions, including those from funds recovered from FTX, might also be processed through Coinbase. BlockFi expects to recover around $875 million from FTX, prioritizing the first $250 million—however, the full recovery depends on financial health.

BlockFi stopped withdrawals in November 2022 citing the uncertainty of FTX's bankruptcy, revealing FTX as its second-biggest creditor. After navigating its bankruptcy, BlockFi resumed payouts in 2023 while FTX remains embroiled in bankruptcy.