BlockFi repayments to creditors to begin this month through Coinbase
Bankrupt crypto lender BlockFi said in a post on X that it will begin interim crypto distributions through Coinbase in July.
“The distributions will be processed in batches in the coming months, and eligible clients will receive a notification to the BlockFi account email on file,” the company said.
It added: “Please note that non-US Clients are unable to receive funds at this time due to the regulatory requirements applicable to them.”
BlockFi filed for Chapter 11 bankruptcy protection in November 2022 amid the collapse of convicted fraudster Sam Bankman-Fried’s crypto exchange FTX and its related company Alameda Research, to which BlockFi had made substantial loans.
BlockFi CEO Zac Prince testified last October at Bankman-Fried’s trial that his company might have avoided bankruptcy had it not loaned hundreds of millions to Alameda Research, DL News reported.
“It appeared strong,” Prince said of Alameda’s financial state. “They had assets that were greater than liabilities by many billions of dollars.”
But the money wasn’t actually there. When BlockFi asked Alameda to return crypto worth $850 million, Alameda sent back only $150 million.
BlockFi filed for bankruptcy later that month.
After almost a year, BlockFi emerged from bankruptcy last October with a plan to wind down and distribute its remaining assets.
The BlockFi web platform shut down in May, and the company said in a blog post that all client communications would take place via official email channels, on social media @BlockFi, via claims agent Kroll, its claims distribution partner Digital Disbursements, or from Coinbase.
It asked clients to be vigilant of scam attempts from third-party bad actors.
