The BlockFi crypto lender will begin returning digital assets to customers via Coinbase by the end of July. The company that went through bankruptcy notified about this through 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, 2024The distribution will take place in several stages in the "coming months".
Customers will receive notifications to their registered email address.
American non-residents are currently not eligible to receive funds "due to regulatory requirements."
"The bankruptcy trustee [...] is working with the liquidators of BlockFi International to distribute assets to clients who are not US citizens," the company warned.
BlockFi announced its closure in May 2024 and cooperation with Coinbase regarding the withdrawal of funds. The latter assumes that customers of the landing platform will be able to return cryptocurrencies if they have an approved account on the exchange.
The requirements of BlockFi users in fiat are handled by Kroll and its partner, Digital Disbursements.
The bankruptcy trustee will continue to use Coinbase for future payments — including to reimburse funds received from FTX and Alameda Research. A $875 million settlement in principle was reached with the latter.
Recall that in May 2023, the court allowed BlockFi to return $300 million to users of custodial accounts. In the autumn of the same year, the crypto-lender completed its preparations for bankruptcy and declared its readiness to pay creditors.