Bankrupt crypto lender BlockFi said on May 9 that it would shut down its web platform by the end of May and rely primarily on Coinbase as a distribution partner.The change ensures that BlockFi Interest Account (BIA), Retail Loan, and Private Clients can continue to access withdrawals as part of the bankruptcy claims process.Crypto-eligible customers will be able to access funds in kind if they have an open or approved Coinbase account. The condition applies to crypto-eligible customers who did not withdraw crypto from BlockFi’s web platform by April 28 or did not verify their identity by May 10.Crypto-eligible customers who do not create a Coinbase account or cannot create one will instead receive funds in cash.BlockFi emphasized that it has not partnered with any other crypto companies for distributions and warned users of scams from bad actors claiming otherwise.BlockFi and Coinbase will contact users who are on file with instructions.The plan administrator in BlockFi’s bankruptcy case may perform future distributions through Coinbase, including those related to funds recovered from FTX.BlockFi was expected to receive nearly $875 million from FTX as of March. Only the first $250 million is prioritized, while the remainder depends on FTX’s ability to pay customers in its own case.BlockFi said that, without Coinbase’s involvement, the plan administrator would only be able to make cash distributions rather than crypto distributions going forward.BlockFi originally filed for halted withdrawals on Nov. 10, 2022, citing a “lack of clarity” around FTX’s separate bankruptcy as the reason for its own shutdown. Weeks later, BlockFi entered bankruptcy proceedings that revealed FTX as its second-largest creditor.BlockFi emerged from bankruptcy in October 2023 and began to pay users this year. FTX remains in bankruptcy proceedings.Before transitioning to crypto writing in 2018, Mike studied library and information sciences. Currently, he resides on Canada’s West Coast.AJ, a passionate journalist since Yemen’s 2011 Arab Spring, has honed his skills worldwide for over a decade. Specializing in financial journalism, he now focuses on crypto reporting. Follow us on X for your essential dose of daily crypto news and deep dives.The current uncertainty in the market is being fueled by the impending Federal Open Market Committee’s (FOMC) decision on cutting interest rates.Embracing Bitcoin mining could be pivotal in Trump’s envisioned energy strategy.Courts dismissed the case without prejudice, leaving Musk an option to refile the case at a later date.The S-1 filing follows the SEC’s approval of NYSE Arca’s proposed rule change on behalf of ProShares.CryptoSlate’s latest market report dives deep into the effects corporate Bitcoin purchases have on the market.Disclaimer: Our writers’ opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.
