Crypto News- BlockFi, the embattled crypto lender, is winding down its operations, signaling the impending closure of its web platform come May. Collaborating with Coinbase, BlockFi is facilitating fund withdrawals for its clients.
Coinbase and BlockFi Collaboration Leads to Web Platform Shutdown
In a recent blog update, BlockFi outlined its partnership with Coinbase, allowing eligible users to access and withdraw funds from their BlockFi Interest Accounts (BIA), Retail Loans, and Private Clients portfolios.
BlockFi’s Turbulent Path: From Bankruptcy to Closure and Commitment to Customer Restitution
The tumultuous journey for BlockFi began in November 2022, when it filed for bankruptcy in the wake of FTX’s collapse. In 2023, BlockFi announced its shutdown and vowed to return customers’ crypto holdings by April 28, 2024.
BlockFi’s Deadline Drama: Last Chance for Withdrawals via Coinbase
With the withdrawal deadline now past, BlockFi notified clients on Thursday, May 9, offering instructions on setting up a Coinbase account for withdrawals. Those who missed the deadline have an additional opportunity for verification via the BlockFi platform by May 10. Failure to establish an approved Coinbase account may result in asset liquidation.
Moving forward, BlockFi plans to utilize Coinbase for future distribution rounds, potentially involving recovered funds from FTX. The company emphasized its exclusive partnership with Coinbase for crypto distributions, cautioning investors against potential scams from third-party platforms.
BlockFi’s Turning Point: $875 Million Settlement and CEO’s Testimony
BlockFi’s journey to stability saw a significant development in March with an $875 million settlement with the estates of FTX and Alameda Research. CEO Zac Prince, who testified against FTX founder Sam Bankman-Fried, attributed BlockFi’s bankruptcy to FTX’s actions.
Following court approval of BlockFi’s Chapter 11 plan in September 2023, efforts to repay the lender’s 10,000 creditors are underway. With estimates suggesting debts reaching up to $10 billion, including significant sums owed to major creditors like bankrupt crypto hedge fund Three Arrows Capital, BlockFi continues its quest for financial recovery.
Coinbase and BlockFi Collaboration – FAQ (Frequently Asked Questions)
What does this collaboration entail?
This collaboration allows BlockFi users to access and withdraw funds through Coinbase.
What advantage does it offer?
It provides BlockFi users with a convenient and secure method to withdraw their funds.
If I already have a Coinbase account, how can I benefit?
Existing Coinbase users can seamlessly withdraw their funds from BlockFi by linking their accounts.
I am a BlockFi user, how can I benefit from this collaboration?
BlockFi users can initiate fund withdrawals through Coinbase by following the provided instructions.
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