Bitrabo Editorial
BlockFi Initiates Repayment Process Through Coinbase for Customers
The defunct cryptocurrency lending platform, BlockFi, has disclosed plans to commence repayments for users who failed to complete the withdrawal procedure via the platform. The interim crypto distributions will be facilitated through a collaboration with Coinbase, a leading cryptocurrency exchange.
Initial Distribution Announcement
BlockFi announced the closure of its web platform at the end of May, alongside its partnership with Coinbase to facilitate client fund withdrawals. This alliance is aimed at providing eligible users who missed the April 28 withdrawal deadline access to their cryptocurrencies through Coinbase.
The lending platform recently unveiled that the first batch of interim crypto distributions will kick off this month through Coinbase. Eligible customers meeting specific criteria will receive repayments through this distribution channel.
The criteria encompass users qualifying for the initial interim distribution pre-platform shutdown and those eligible for additional crypto allocation. Customers residing outside the US will experience a delay in fund disbursement due to regulatory obligations governing non-US clients, according to BlockFi.
Despite the delay, efforts are being made to adhere to regulatory norms for non-US clients by the Plan Administrator in collaboration with BlockFi International’s Joint Liquidators.
The distribution process will be executed in stages over the upcoming months, with customers being notified via their registered BlockFi email addresses.
Furthermore, users failing to complete identity verification by the May 10 deadline can withdraw their assets on Coinbase if they possess or create an approved account on the platform. Those opting out of a Coinbase account will receive their distribution in cash.
Eligible Users Notified by Coinbase
Customers of BlockFi have reported receiving notifications from Coinbase recently. Posts on the dedicated subreddit for the lending platform detail emails from Coinbase confirming the successful alignment of identifying information with BlockFi’s data.
While some clients expressed enthusiasm over the repayment progress, others raised doubts regarding the distribution status.
There were mixed reactions among users, with some skeptics demanding tangible proof of the process and a specified timeline for fund delivery. BlockFi advises caution against phishing scams and assures users that official communications will only be conducted through recognized channels.
BlockFi filed for Chapter 11 bankruptcy protection in November after facing repercussions from the collapse of Three Arrows Capital and FTX. It disclosed having $257 million in cash and over 100,000 creditors with substantial outstanding claims, including the US Securities and Exchange Commission.
Earlier this year, BlockFi settled claims with FTX and Alameda Research, resolving nearly $1 billion in outstanding debts and ensuring FTX’s acknowledgment of the total owed amount.
