Cryptocurrency lender BlockFi, once valued at $3 billion, is making arrangements with Coinbase to manage the distribution of assets recovered from the bankrupt FTX exchange.
In a blog post dated May 9, BlockFi announced its decision to shut down its website in May as part of its post-bankruptcy restructuring efforts following the collapse of FTX. While the exact timeline for the closure is still being finalized, BlockFi, headquartered in Jersey City, stated that clients would lose access to its platform after the specified deadline.
To ensure fair distribution of assets among creditors and clients, BlockFi has partnered with the crypto exchange Coinbase to facilitate crypto withdrawals for eligible customers. Instructions for withdrawals via Coinbase will be sent to eligible customers via their registered email addresses, according to the blog post.
“The Plan Administrator will be able to utilize Coinbase for future rounds of distributions, including those based on assets recovered from FTX,” BlockFi stated.
For customers unable to open a Coinbase account, BlockFi assured that all distributions would be made in cash. Customers are advised to download their transaction history, tax documents, and any other essential data from the platform before the shutdown date.
BlockFi’s journey through bankruptcy commenced in November, when the company filed for Chapter 11 protection due to crypto market volatility and its significant exposure to FTX. However, less than a year later, BlockFi emerged from bankruptcy proceedings, initiating the process of repaying creditors.
Summary Review: BlockFi’s partnership with Coinbase marks a significant step in the post-bankruptcy restructuring process, as the company moves towards distributing assets recovered from the FTX exchange. The decision to close BlockFi’s website reflects its commitment to navigating the aftermath of the FTX collapse and ensuring fair distribution of assets among creditors and clients. By leveraging Coinbase’s platform for crypto withdrawals, BlockFi aims to provide continuity and accessibility to eligible customers during the distribution process. While the specifics of the closure timeline are still being determined, BlockFi assures customers that all distributions will be handled transparently, with options available for those unable to utilize Coinbase. BlockFi’s emergence from bankruptcy proceedings underscores its resilience in the face of market challenges and its dedication to fulfilling obligations to creditors and clients alike. As the distribution process unfolds, stakeholders will be closely watching how BlockFi executes its repayment plan and navigates the evolving landscape of the cryptocurrency industry.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
