BlockFi to Shut Web Platform, Partners with Coinbase for Crypto Withdrawals

In a significant move, crypto lender BlockFi announced its intention to close its web platform this month, opting to collaborate with Coinbase for distributing funds to clients.

BlockFi's decision to partner with Coinbase allows eligible clients, including those with BlockFi Interest Accounts, Retail Loans, and Private Clients, to withdraw their crypto holdings conveniently.

BlockFi's Bankruptcy Amidst FTX Collapse: CEO Blames Founder's Actions

The New Jersey-based firm faced financial challenges, filing for bankruptcy in November 2022 following the collapse of FTX. CEO Zac Prince attributed BlockFi's bankruptcy directly to the actions of FTX founder Bankman-Fried, whom Prince testified against in a criminal trial.

BlockFi Extends Deadline for Customer Withdrawals, Introduces Alternative Asset Retrieval Options

BlockFi previously announced plans to return customers' crypto holdings in 2023 and set an April 28, 2024 deadline for withdrawal requests. For those who missed the deadline, BlockFi now offers an opportunity to withdraw from its platform or establish an approved Coinbase account for asset retrieval.

Plan Administrator Partners with Coinbase for Efficient Fund Distributions

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

BlockFi Urges Customers to Secure Essential Documents Before Platform Closure

BlockFi advises customers to download essential documents before the platform closure, ensuring they have access to transaction history, tax documents, and relevant information. Additionally, customers are warned against potential scam attempts from third-party entities, as BlockFi does not plan to engage with additional providers for cryptocurrency distributions.

The collaboration between BlockFi and Coinbase signifies a strategic move to streamline fund distribution processes while ensuring customer convenience and security in the evolving landscape of crypto finance.