Key Takeaways
- BlockFi winds down operations: Following bankruptcy, BlockFi has partnered with Coinbase to facilitate client withdrawals by April 28, 2024.
- Major settlement reached: Resolved $875 million in claims with FTX and Alameda Research estates.
- Chapter 11 repayment plan: Approved in September 2023 to address debts exceeding $10 billion to 100,000+ creditors.
BlockFi, the crypto lending platform impacted by FTX’s collapse, is closing its web platform. Through a partnership with Coinbase, eligible clients can withdraw remaining funds.
"Coinbase will ensure continuity of crypto withdrawals for eligible BlockFi Interest Account (BIA), Retail Loan, and Private clients."
— BlockFi (@BlockFi)
Withdrawal Process and Deadlines
- April 28, 2024: Final deadline for withdrawal requests.
- Post-deadline steps: Clients receive instructions to link Coinbase accounts (existing or new).
- Verification extension: Available until May 10 for missed deadlines; unclaimed assets face liquidation.
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Financial Recovery and Settlements
BlockFi’s $875 million settlement with FTX/Alameda resolves billion-dollar claims, waiving mutual counterclaims. CEO Zac Prince cited FTX’s actions as pivotal in BlockFi’s bankruptcy.
Creditor Repayment Plan
- Approved Chapter 11 plan: Targets repayment to 10,000+ creditors, including $1 billion to top three.
- Three Arrows Capital: Among creditors owed $220 million.
FAQs
Q: Can I withdraw funds after April 28?
A: Only via Coinbase after account setup. Missed deadlines may result in cash liquidation.
Q: Will BlockFi use other platforms for distributions?
A: No. Coinbase remains the exclusive partner; clients should avoid third-party scams.
Q: How much does BlockFi owe creditors?
A: Estimates suggest up to $10 billion across 100,000+ creditors.
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BlockFi confirms future distributions via Coinbase, including potential recoveries from FTX. The firm warns against phishing scams mimicking official communications.
Final Notes
- No additional partners: Coinbase is the sole distribution channel.
- Fraud alerts: BlockFi actively identifies fake withdrawal offers.
For authoritative updates, refer only to official BlockFi and Coinbase announcements.