After emerging from bankruptcy in 2023 due to a chain of bankruptcies linked to FTX’s downfall, BlockFi announced via a May 9 blog post its intention to shut down its web platform sometime this month.
While the exact schedule “remains under consideration due to ongoing efforts and initial distribution,” the company based in Jersey City states that following the deadline, clients “will lose access to the BlockFi platform.”
In order to facilitate the fair distribution of debts to creditors and customers, BlockFi has joined forces with crypto exchange Coinbase to offer “continuity of crypto withdrawals” to “eligible” customers. Detailed instructions regarding withdrawals through Coinbase will be conveyed to eligible customers via their registered email addresses, as stated in the blog post.
“The Plan Administrator will have the ability to use Coinbase for future rounds of distributions, including distributions based on funds recovered from FTX.”
BlockFi
For individuals unable to establish a Coinbase account, BlockFi has confirmed that all distributions “will be issued in cash.” Customers are encouraged to download their transaction history, tax documents, and any other critical information from the platform before the shutdown date.
BlockFi’s bankruptcy saga commenced in November, as the company filed for Chapter 11 protection owing to crypto market volatility and its substantial ties to FTX. Remarkably, in less than a year, BlockFi emerged from bankruptcy proceedings, initiating the repayment process for creditors.
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