Bankrupt cryptocurrency firm BlockFi is set to begin distributing crypto assets through Coinbase starting in July. Eligible account users will receive email notifications from BlockFi, with payouts occurring in phases over the coming months. However, due to regulatory restrictions, non-US consumers will not be included in these payments.
In May, BlockFi partnered with Coinbase to facilitate crypto withdrawals for qualifying BlockFi Interest Account, Retail Loan, and Private Clients. Although the initial withdrawal window for estate funds has closed, BlockFi is continuing its collaboration with Coinbase to assist with the next steps. Clients will receive detailed instructions via email on how to create a Coinbase account and access their assets.
Clients who missed the withdrawal deadline or did not complete identity verification can still retrieve their funds. Those with an open and approved Coinbase account will have direct access to their assets. If an account is not established, the assets may be converted to cash and distributed accordingly.
The Plan Administrator will utilize Coinbase for future disbursements, including cash recovered from FTX. Without this partnership, subsequent distributions might only be available in cash. Clients unable to open a Coinbase account will receive their amounts in cash.
BlockFi cautions clients to remain vigilant against fraud attempts by third-party entities claiming to offer cryptocurrency distributions. The company emphasizes that it will not collaborate with any other providers for these releases. Crypto scammers have been targeting creditors of failing companies such as FTX and BlockFi, sending legitimate-looking phony emails that promise quick payouts.
As the distribution process unfolds, BlockFi aims to ensure a smooth and secure transfer of assets to its clients, reinforcing the importance of using only the official channels for these transactions.
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