BlockFi to Begin Returning Customer Funds Through Coinbase

Bankrupt crypto lender BlockFi is gearing up to return funds to its customers this month, with Coinbase handling the distribution.

After suspending operations in May due to the FTX collapse and subsequent bankruptcy, BlockFi teamed up with Coinbase to manage the return of customer assets.

The window to request funds has closed, and BlockFi is now working with Coinbase to proceed with the next steps. Initial crypto distributions through Coinbase are set to begin in July 2024, with the funds being distributed in batches over the coming months.

Customers will receive email notifications with instructions on creating a Coinbase account, although non-U.S. clients are currently excluded due to regulatory issues.

Customers who missed the original deadlines can still access their funds via a verified Coinbase account, with cash distributions available for those unable to open an account. Future distributions, including those from recovered FTX funds, will also be managed through Coinbase.

BlockFi has cautioned clients to be wary of scams from third parties claiming to offer crypto distributions, emphasizing that it will only work with Coinbase for these transactions.

Following its bankruptcy declaration in November 2022, BlockFi outlined plans to return customers’ crypto holdings, with a withdrawal request deadline that passed on April 28, 2024. Instructions for setting up a Coinbase account were provided to clients in May.