- BlockFi has announced adopting Coinbase as a distribution partner.
- According to BlockFi, working with Coinbase will ensure the continuity of eligible crypto withdrawals.
- The BlockFi platform will shut down in May after initial distributions.
BlockFi, the now-bankrupt digital asset lender, has announced adopting Coinbase as a distribution partner. In a recent blog post, the former crypto platform noted that working with Coinbase will ensure the continuity of crypto withdrawals available to eligible BlockFi Interest Accounts (BIA), Retail Loans, and Private Clients.
According to the former digital asset lender, this new partnership will explore account emails on file to communicate with clients on further details, including instructions on creating accounts on Coinbase. It would also allow crypto-eligible clients who did not meet the April 28 withdrawal deadline to access their funds.
However, BlockFi clarified that users who do not create Coinbase accounts as instructed may have their funds liquidated and distributed to them in cash, according to the Plan. The one-time digital asset lender further noted that Coinbase would remain the viable option for the Plan Administrator in the event of future distributions. Such could include funds recovered from FTX, the bankrupt crypto exchange.
Recall that in 2022, FTX entered a deal with BlockFi to buy the digital asset lender for $240 million. The defunct crypto exchange also agreed to provide BlockFi with a $400 million revolving credit facility.
BlockFi noted that outside of distributing funds recovered from FTX, the Plan Administrator would only be able to make distributions in cash for those unable to register on Coinbase. However, the former digital asset lender warned users not to patronize any other provider for crypto distributions on its behalf. It warned its clients to be vigilant of scam attempts from third-party bad actors.
Concluding with the announcement, BlockFi told clients it would shut down in May 2024. However, it did not provide a specific date, citing ongoing work and initial distributions. The platform promised to communicate the shutdown date in due course, noting that clients will become unable to access the BlockFi platform after the shutdown.
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