Centralized lender BlockFi announced that eligible BlockFi customers will be able to access cryptocurrency withdrawals through Coinbase after the company shuts down its web platform.
This collaboration with Coinbase ensures the continuity of cryptocurrency withdrawals for those holding BlockFi accounts after the end of the initial withdrawal period for eligible asset funds on the platform.
“BlockFi is pleased to announce that it has hired Coinbase as its distribution partner to ensure continuity of cryptocurrency withdrawals for eligible BIAs (BlockFi Interest Accounts), retail lenders, and individual customers,” the company said.
It added that the BlockFi web platform will be shut down this month.
The company clarified that customers who missed the April 28 withdrawal deadline and May 10 confirmation deadline through the BlockFi platform can still access their assets by creating or using an approved Coinbase account.
This means that these clients’ assets are not immediately converted to cash. Instead, you can withdraw your cryptocurrency if you have an approved Coinbase account.
However, if a customer is eligible to withdraw cryptocurrency but misses the deadline and does not have a verified Coinbase account, those assets will be converted to cash and distributed according to the plan.
BlockFi’s plan administrators will continue to use Coinbase for future distributions, including the recovery of FTX, the company added.
Notably, BlockFi reached an $875 million agreement in principle with FTX and Alameda Research assets.
how did we get here
BlockFi first paused customer withdrawals in November 2022 and filed for Chapter 11 bankruptcy protection shortly thereafter. In September 2023, the Bankruptcy Court approved BlockFi’s Chapter 11 plan to repay 10,000 creditors.
BlockFi, a centralized lender, offered interest-bearing savings accounts. However, it operated like a bank, lending user deposits to cryptocurrency customers.
The centralized lending sector suffered greatly in 2022 after a tumultuous year for centralized cryptocurrency lending services. This period saw the collapse of players such as Terra and FTX, leading to the bankruptcy of several companies such as Chelsea, Voyager Digital, and Genesis. , three arrows.
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