The crypto lender BlockFi is set to return digital assets to clients via Coinbase by the end of July. The firm, which has undergone bankruptcy proceedings, announced this on X.
As described in our previously announced Coinbase distribution partnership blog post (https://t.co/M0T56YiKAe), BlockFi will commence first interim crypto distributions through Coinbase in July 2024.
— BlockFi (@BlockFi) July 17, 2024
The distribution will occur in several stages over the “coming months.”
Clients will receive notifications at their registered email addresses.
Non-residents of the United States are currently ineligible to receive funds “due to regulatory requirements.”
“The trustee […] is working with the liquidators of BlockFi International to distribute assets to non-U.S. clients,” the company warned.
BlockFi announced its closure in May 2024 and its partnership with Coinbase for fund withdrawals. This arrangement allows clients of the lending platform to reclaim cryptocurrencies if they have an approved account on the exchange.
User claims in fiat are being processed by Kroll and its partner, Digital Disbursements.
The trustee will continue to use Coinbase for future payments, including the reimbursement of funds received from FTX and Alameda Research. A settlement in principle was reached with the latter for $875 million.
In May 2023, a court allowed BlockFi to return $300 million to users of custodial accounts. Later that year, the crypto lender completed its bankruptcy preparations and declared readiness to make payments to creditors.