BlockFi to start temporary crypto distribution via Coinbase

Bankrupt crypto lender BlockFi is about to kick off its first temporary crypto asset distribution through Coinbase this July. The distribution will be done in batches over the next few months.

If you’re eligible, expect an email notification from your BlockFi account. Unfortunately, non-US customers won’t get any funds due to regulatory issues.

In May, BlockFi announced its partnership with Coinbase to make sure crypto withdrawals continue for eligible BlockFi Interest Account (BIA), Retail Loan, and Private Clients.

Since the window to request a withdrawal of the initial round of estate funds using BlockFi has closed, they are now working closely with Coinbase to enable the next steps.

BlockFi will send clients more details via email, including how to create a Coinbase account. If you missed the deadline to withdraw your cryptos by April 28, or didn’t complete identity verification by May 10, you can still get your funds. 

They will be available in kind if you have an open and approved Coinbase account. If you don’t create an approved Coinbase account, your assets might be converted to cash and distributed that way, as per the Plan.

The Administrator will use Coinbase for future distributions, including those based on funds recovered from FTX. Without this, the Plan Administrator would only be able to distribute cash in future rounds.

If you can’t open a Coinbase account, you’ll receive your distributions in cash. BlockFi warns clients to be careful of scam attempts from third-party bad actors pretending to offer crypto distributions. In their words:

“Be advised that BlockFi will NOT be partnering with any other providers for crypto distributions, so we ask our clients to be vigilant of scam attempts from third-party bad actors targeting our clients.”

The lender’s web platform shut down in May.