BlockFi Clients Must Set Up Coinbase Account by August 23 to Receive Crypto from FTX Claims

• BlockFi clients are required to establish a Coinbase account by August 23 to receive their claims in cryptocurrency.
• US clients of BlockFi should anticipate receiving their distributions within the upcoming 90 days.
• International clients may experience delays due to extended identity verification processes.

BlockFi clients must act swiftly to set up their Coinbase accounts to ensure receipt of their eligible claims in cryptocurrency.

BlockFi’s Asset Distribution Plan for US Clients

BlockFi has announced that US clients can expect their eligible claims within the next 90 days. This comes after the crypto lender commenced the sale process of its claims against bankrupt exchange FTX, resulting in the realization of funds exceeding the face value of the claims.

The Impact of FTX Claims Settlement

The BlockFi Estate recently sold its outstanding claims against FTX for a value surpassing the original claims. Consequently, the estate will distribute 100% of the dollarized value of allowed customer claims. This significant recovery effort is expected to enable the full repayment of BlockFi clients’ claims.

Extended Waiting Period for International Clients

International clients of BlockFi will face longer waiting times due to mandatory regulatory requirements in jurisdictions such as Bermuda. These regulations necessitate additional identity verification and “Know Your Customer” (KYC) procedures before the distribution can occur.

Efforts to Expedite Due Diligence

The Plan Administrator and Joint Liquidators are prioritizing the required diligence to ensure timely distributions to international clients. BlockFi has committed to reaching out to these clients to provide necessary guidance and expedite the distribution process.

Conclusion

In conclusion, BlockFi’s current recovery efforts are set to benefit its clients significantly, with US clients expecting distributions in the next 90 days and international clients requiring additional time for due diligence. Indeed, BlockFi’s strategic actions, particularly the sale of claims against FTX, demonstrate a strong commitment to repaying its clients in full.