Key Points:

  • BlockFi shut down will take place at the end of May, and Coinbase will be reliant on it for distribution.

  • Clients who missed withdrawal deadlines will have their crypto holdings transferred to Coinbase instead of being liquidated to cash.

  • The partnership ensures continued access to crypto assets, with BlockFi highlighting Coinbase's involvement as crucial for facilitating future crypto distributions.

BlockFi, a crypto lender undergoing liquidation, has announced plans to close its web platform by the end of May 2024.

BlockFi Shut Down Will Take Place in Partnership with Coinbase for Distribution

In a bid to facilitate the withdrawal process for its clients, BlockFi will be teaming up with Coinbase, a leading cryptocurrency exchange, as its primary distribution partner.

BlockFi shut down comes as part of its bankruptcy proceedings, ensuring that clients with BlockFi Interest Accounts (BIAs), retail loans, and private accounts can still access their funds. Eligible customers who have not withdrawn their crypto holdings by April 28 or completed identity verification by May 10 will have their assets transferred to Coinbase instead of being liquidated to cash.

Continued Access to Crypto Assets Through The Partnership

Clients will have the option to access their funds in kind through their existing or newly created Coinbase accounts. Those unable to create a Coinbase account will receive their funds in cash. BlockFi has emphasized that it has not partnered with any other crypto companies for distributions and warns users of potential scams.

The partnership between BlockFi and Coinbase aims to enable seamless access to crypto holdings during BlockFi shut down. Instructions will be provided to users by both companies, with future distributions potentially facilitated through Coinbase by the plan administrator in BlockFi's bankruptcy case.

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