Troubled crypto lender BlockFi will be repaying 20% to 40% of interest-earning assets to its customers. The latest development comes over three months after the lending platform emerged from bankruptcy and declared its intention to repay creditors.
Finally! BlockFi Creditors to be Repaid
According to an email sent to BlockFi customers, which Coinfomania reviewed, customers whose funds are stuck in BlockFi products, such as the BlockFi Interest Account (BIA), loan clients and private clients may be able to initiate the withdrawal of funds starting this month.
The company added that withdrawals will not be available across several account types and sizes simultaneously.
“The opening of withdrawals will be staggered across account types and values to minimize risk and to ensure a smooth withdrawal process for all involved over an anticipated period of a few weeks. Accordingly, not all accounts will be immediately available,” the email stated.
Although customers will be receiving only 20% to 40% of their money in the initial repayment process, the firm expects to increase the reimbursed funds when it recovers its funds stuck in the FTX estate. Reports show that BlockFi has over $1 billion in the collapsed crypto exchange FTX.
Notably, the yet-to-be-repaid funds trail BlockFi’s reimbursement of nearly 130,000 customers last month. On January 22nd, the crypto lender refunded more than $500 million worth of crypto assets from its Wallet Product to these clients. These customers may have included the California users whom the lending firm promised over $100,000 in reimbursement.
What is the Withdrawal Process?
BlockFi explained in the email how affected users can recover their funds. They must create an external digital wallet through which reimbursed funds will be received. Customers who choose the option of receiving their digital assets as fiat currencies will receive them in their respective bank accounts.
All customers are required to complete an identity verification process to enable withdrawals. The needed details for the verification will be emailed to users once they submit a withdrawal request.
