2024

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Crypto lender BlockFi once valued at $3 billion is closing its website and taps Coinbase for distributions of funds recovered from bankrupt FTX.
<a href="https://crypto.news/tag/blockfi/" target="_blank" rel="noopener noreferrer nofollow">BlockFi</a>, which emerged from bankruptcy in 2023 following a series of cascading <a href="https://crypto.news/tag/bankruptcy/" target="_blank" rel="noopener noreferrer nofollow">bankruptcies</a> associated with the collapse of <a href="https://crypto.news/tag/ftx/" target="_blank" rel="noopener noreferrer nofollow">FTX</a>, said in a <a href="https://blockfi.com/blockfi-coinbase-distribution-partnership/" target="_blank" rel="noopener noreferrer nofollow">blog post</a> on May 9 that it plans to discontinue its web platform sometime in May.
Although the specific timetable still “remains under consideration given ongoing work and initial distribution,” the Jersey City-headquartered company says that after the deadline clients “will no longer be able to access the BlockFi platform.”
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 BlockFi is pleased to announce Coinbase as our distribution partner to ensure continuity of crypto withdrawals available to our eligible BlockFi Interest Account (BIA), Retail Loan, and Private clients.— BlockFi (@BlockFi) <a href="https://twitter.com/BlockFi/status/1788652820435984800?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">May 9, 2024</a>
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To ensure the distribution of debts among creditors and customers, BlockFi has partnered with crypto exchange <a href="https://crypto.news/tag/coinbase/" target="_blank" rel="noopener noreferrer nofollow">Coinbase</a> to provide “continuity of crypto withdrawals” for “eligible” customers. Further instructions regarding withdrawals via Coinbase will be communicated to eligible customers via their registered email accounts, the blog post reads.
You might also like: <a href="https://crypto.news/ftx-alameda-reach-settlement-with-crypto-lender-blockfi-will-pay-up-to-874m/" rel="noopener noreferrer nofollow"> FTX, Alameda reach settlement with crypto lender BlockFi, will pay up to $874m </a>
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 “The Plan Administrator will have the ability to use Coinbase for future rounds of distributions, including distributions based on funds recovered from FTX.” BlockFi
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For those who are unable to open a Coinbase account, BlockFi assured that all distributions “will be made in cash.” Customers are advised to download their transaction history, tax forms, and any other important data from the platform before the shutdown date.
BlockFi’s journey through bankruptcy began in November, with the company <a href="https://crypto.news/blockfi-declares-bankruptcy-as-ftx-wildfire-spreads/" target="_blank" rel="noopener noreferrer nofollow">filing</a> for Chapter 11 protection due to volatility in crypto markets and its significant exposure to FTX. However, less than a year later, BlockFi successfully emerged from bankruptcy proceedings to start the process of repaying creditors.
Read more: <a href="https://crypto.news/bankrupt-lender-blockfi-files-to-convert-trade-only-tokens-into-stablecoins/" rel="noopener noreferrer nofollow"> Bankrupt lender, BlockFi, files to convert ‘trade-only’ tokens into stablecoins </a>

BlockFi partners with Coinbase to distribute assets recovered from FTX

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