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BlockFi to Start Interim Crypto Distributions via Coinbase in July
BlockFi begins interim crypto distributions via Coinbase in July 2024, aiding recovery for eligible clients after bankruptcy due to the FTX collapse.
Author by
Victor Muriki
BlockFi, a bankrupt crypto lending company, has revealed its initial interim crypto distributions via Coinbase to commence in July 2024.
The company has done this after reaching a $940 million settlement with the estates of FTX and Alameda Research with the company’s customer’s money almost fully restored.
The distributions will be occurring in a batch manner in the next few months. The eligible clients will be notified via email to the email address used in the BlockFi account. It also said that non-U.S clients will not be able to receive their funds at this time because of certain rules and regulations.
In May, BlockFi collaborated with Coinbase to enable the continuation of crypto withdrawals for eligible BlockFi Interest Account (BIA), Retail Loan and Private Clients. This collaboration is to facilitate a proper distribution of the supplies for the customers who were not able to make their withdrawals in the previous announced date.
Notification and Account Setup
BlockFi will communicate with the clients via email and will include a step by step process of how to open a Coinbase account. If a user did not withdraw by April 28 or complete the identity check by May 10, he or she can still get the money. If an approved Coinbase account is not created, the assets shall be liquidated and distributed based on the division.
The Plan Administrator shall make future distributions through Coinbase and including those made based on the funds that were regained from FTX. Those clients who will not be able to open an account in Coinbase will receive their distributions in cash.
BlockFi became one of the first firms to file for bankruptcy after the FTX crash in November 2022. The crypto lender has around 100,000 creditors and owes between $1 billion to $10 billion.
BlockFi has entered for Chapter 11 bankruptcy protection on the 28th of November 2022, a month after freezing its users’ withdrawals. As of September 2023, creditors approved the firm’s bankruptcy restructuring plan, which can be considered as a major achievement on the way to refund customers.
Warning Against Scam Attempts
BlockFi has also informed its users to beware of scams from other individuals or groups portraying as offering crypto distributions. The company stated that it will not cooperate with other providers in the sphere of crypto distributions.
This alert comes after a series of phishing emails that were sent to the creditors of the bankrupted crypto businesses, namely FTX and BlockFi. MailerLite experienced a data breach in January, and Plumferno, a security expert, pointed out that these scam emails looked like the real deal.
Victor Muriki is an esteemed writer focused on cryptocurrency and finance, holding a Bachelor's in Actuarial Science. Known for his sharp analysis and insightful content, he has a strong command of English and is skilled at conducting in-depth research and ensuring timely delivery.
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