BlockFi to Start Interim Crypto Distributions Through Coinbase This Month

Bankrupt crypto lender BlockFi will commence first interim crypto distributions through Coinbase (COIN) in July 2024, it announced on Thursday.

BlockFi was the first victims of the contagion caused by crypto exchange FTX’s collapse in early November 2022 and filed for Chapter 11 bankruptcy protection on Nov. 28, 2022, less than a month after halting withdrawals from the platform. BlockFi then began the process of asking the court to greenlight customer withdrawals that are locked up in the platform.

In September 2023, creditors approved its bankruptcy restructuring plan and in early 2024, BlockFi settled with the estates of FTX and Alameda Research for nearly $1 billion dollars bringing BlockFi closer to full recovery for customers.

"The distributions will be processed in batches in the coming months, and eligible clients will receive a notification to the BlockFi account email on file," the announcement said. "Please note that non-US Clients are unable to receive funds at this time due to the regulatory requirements applicable to them."

Those clients who did not withdraw their funds by earlier deadlines could reach out to the bankruptcy administrator has the ability to use Coinbase for future rounds of distributions.

Read More: BlockFi Says It's Taken Major Step Toward Emerging From Bankruptcy