BlockFi Announces Closure of Web Platform, Partners with Coinbase for Crypto Withdrawals

• BlockFi, a crypto lending platform, is set to close its web platform and has partnered with Coinbase to facilitate client withdrawals.
• The move comes after the company filed for bankruptcy following the collapse of FTX.
• BlockFi clients will receive instructions on how to set up a Coinbase account to withdraw their digital assets.

BlockFi, a crypto lending platform, is set to shut down its web platform and has partnered with Coinbase to facilitate client withdrawals. This move follows the company’s bankruptcy filing in the wake of the FTX collapse.

BlockFi’s Withdrawal Process Post Closure

BlockFi announced in 2023 that it would be shutting down and returning customers’ crypto holdings. The deadline for most customers to request withdrawals was April 28, 2024. However, the lender has now informed clients that they can still withdraw their digital assets via Coinbase, even if they missed the initial deadline. Clients who do not set up an approved Coinbase account may have their assets liquidated into cash and distributed accordingly.

Precautions Ahead of Platform Closure

BlockFi has advised its customers to download all important documents, including transaction history and tax documents, before the platform’s closure. The company has also warned investors to be vigilant against potential scam attempts from third-party entities, as it has been a target of fraudulent activity in the past. BlockFi has confirmed that it does not plan to collaborate with any other providers for cryptocurrency distributions.

Role of Coinbase in BlockFi’s Asset Distribution

The plan administrator will use Coinbase for upcoming distribution rounds, which may involve distributions from recovered funds from FTX. Without this capability, the administrator would be limited to distributing cash for subsequent distributions. This partnership with Coinbase allows BlockFi to provide a seamless withdrawal process for its clients amidst the platform’s closure.

Conclusion

The closure of BlockFi’s web platform marks a significant development in the crypto lending landscape. The company’s partnership with Coinbase to facilitate withdrawals offers a lifeline to clients who missed the initial withdrawal deadline. As the platform prepares to shut down, clients are advised to retrieve all relevant documents and remain vigilant against potential scams.