US clients of BlockFi can expect to receive their 100% share of the eligible claim within the next 90 days.
BlockFi international clients will have to wait longer due to the longer identity verification process.
BlockFi has reached $874.5 million in principal settlement with FTX and Alameda.
In the latest development, defunct crypto lender BlockFi announced that based on their current recovery efforts, its clients could receive 100% of the eligible claims. The announcement comes at a time when the crypto lender began the sale process of its FTX claims earlier this week.
BlockFi clients need to set up a Coinbase account before august 23 to receive their claims in crypto. Other clients shall receive in cash.
BlockFi to Pay From Proceeds of FTX Claims
Earlier this month in July, the Plan Administrator – BlockFi Estate – sold the lender’s outstanding claims against bankrupt crypto exchange FTX for an amount that was in excess of the face value of the claims.
“As a result, the BlockFi Estate will be distributing 100% of the dollarized petition date value on all allowed customer claims,” noted the defunct crypto lender.
Although the date of claim settlement with clients isn’t clear, BlockFi said that it would happen in the near future.
The BlockFi Estate is willing to prioritize the safety of client assets while working on the final distribution plan. The crypto lender stated that the US clients can expect to receive their final distributions in the next 90 days.
BlockFi is pleased to announce that, based on the BlockFi Estate’s recovery efforts, clients can now expect to receive 100% of your eligible claim from the BlockFi Estate.
— BlockFi (@BlockFi) July 25, 2024
It also added that in order to receive the distributions in crypto assets, eligible clients have to set up a Coinbase account by August 23, 2024. However, clients that don’t have a Coinbase account, and have submitted their claims to BlockFi by the deadline, shall receive their eligible distributions in cash.
International Clients Will Have to Wait Longer
BlockFi also informed the international clients that they might have to wait a little longer due to the regulatory requirements in Bermuda.
These regulations would make it mandatory to conduct additional identity verification and “Know Your Customer” (KYC) diligence before conducting the distributions.
The Plan Administrator and Joint Liquidators would expedite the required diligence in order to ensure timely distributions.
The crypto lender said that it would reach out to international customers to provide necessary diligence and ensure timely distributions.
BlockFi started the sale process of its FTX claims last month on June 24 and concluded it by July 10. The crypto lender reached over $874.5 million in principal settlement with FTX and Alameda.