**Good news! BlockFi Starts Paying Debts to Clients This Month š**
- BlockFi, a bankrupt crypto lender, announced major steps to repay debts to its clients. In a post on X, they stated the first distribution of funds would begin this month via Coinbase.
- This distribution will start in July and be processed in several batches. Eligible clients will receive notification via email connected to their BlockFi account.
- Unfortunately, clients outside the US cannot receive funds due to applicable regulations.
- BlockFi selected Coinbase as a distribution partner in May to distribute funds to BIA, Retail Loan and Private clients. Clients who are unable to open a Coinbase account will receive cash.
- Earlier this year, BlockFi returned more than $500 million in crypto from Wallet Products to nearly 130,000 clients.
- This payout effort begins after BlockFi emerges from bankruptcy in October 2023. Clients with Earn accounts will receive between 39.4% to 100% of their account value.
- BlockFi filed for Chapter 11 bankruptcy protection in November 2022 following the collapse of FTX. They are still pursuing claims against FTX and Alameda Research to increase the value of client payments, which are estimated to be around $875 million.
What do you think about BlockFi's move? Come on, discuss in the comments column!
