BlockFi to Shut Down Platform and Partner with Coinbase for Fund Withdrawals

Cryptocurrency lender BlockFi has announced the closure of its web platform in May 2024 and a partnership with the American exchange Coinbase to facilitate client fund withdrawals.

BlockFi will be working closely with Coinbase to enable the following: (1) Clients will be provided with further details via account email on file, including instructions necessary to create an account on Coinbase.

— BlockFi (@BlockFi) May 9, 2024

Users eligible for compensation will receive additional information via email, including instructions for creating an account on the exchange.

“[…] we urge our clients to remain vigilant against fraud attempts by third-party actors targeting BlockFi clients,” the statement reads.

The exact date of the platform’s closure will be announced separately. The company advised users to download transaction histories, tax forms, and other important data from the platform in advance. 

Clients who missed the April 28 withdrawal deadline and the May 10 verification deadline through BlockFi will be able to access their assets by creating or using an account on Coinbase. Otherwise, funds will be converted to fiat and distributed according to the plan.

In November 2022, the firm filed for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code. This occurred roughly two weeks after the collapse of FTX and Alameda Research. Previously, BlockFi acknowledged that the exchange and its subsidiary had outstanding obligations to the company.

In May 2023, a court allowed the platform to return $300 million to users of custodial accounts. In the autumn, BlockFi completed its bankruptcy preparations and announced its readiness to disburse funds to creditors.

In March 2024, the company reached a principal agreement to settle claims against FTX and Alameda for $874.5 million.