- Clients of BlockFi will have access to cryptocurrency withdrawals through Coinbase following the platform’s closure later this month.
- The purpose of this is to make sure that BlockFi account holders can continue to withdraw money after the initial withdrawal window closes.
Centralized lender BlockFi declared that following the closure of its web platform, qualified BlockFi clients will have access to cryptocurrency withdrawals through Coinbase.
This agreement with Coinbase guarantees that holders of BlockFi accounts will be able to continue withdrawing cryptocurrency once the platform’s first window for qualifying estate money closes.
The statement from the business read, “BlockFi is pleased to announce that we have chosen Coinbase as our distribution partner to guarantee the continued receipt of cryptocurrency withdrawals for our qualified BlockFi Interest Account (BIA), Retail Loan, and Private Clientele.”
It further mentioned that this month will see the closure of the BlockFi web platform.
The business clarified that in the event that users missed the deadlines of April 28 for withdrawals and May 10 for verification using the BlockFi platform, they may still access their assets by opening or using an authorized Coinbase account.
This suggests that these customers’ assets won’t be immediately converted to cash. Alternatively, they will be able to withdraw their cryptocurrency if they have an approved Coinbase account.
On the other hand, if a client is eligible for cryptocurrency withdrawal but missed the deadline and does not have a verified Coinbase account, assets will be converted to cash and distributed in line with scheme.
The company claims that Coinbase will continue to be used by BlockFi’s plan administrator for any future distributions, including any recoveries from FTX.
FTX and Alameda Research estates and BlockFi have reached a $875 million in-principle settlement.
BlockFi initially ceased enabling user withdrawals in November 2022. The business filed for Chapter 11 bankruptcy soon after. In September 2023, BlockFi’s Chapter 11 plan was approved by the bankruptcy court, enabling it to pay back its ten thousand creditors.
BlockFi was a centralized lender offering deposit accounts with interest. However, it operated like a bank, lending user deposits to bitcoin users.
Following a tumultuous year for centralized crypto lending services in 2022—a year that witnessed the bankruptcy of multiple organizations due to the collapse of major players like Terra, FTX, and Three Arrows—the centralized lending sector suffered significant setbacks. These included Celsius, Voyager Digital, and Genesis.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
