The struggling cryptocurrency lender BlockFi is about to close down its online store. The company made this decision on Thursday. They are collaborating with Coinbase to reimburse customers for their money. The closure and fund distribution are set to happen within the month.
According to the New Jersey-based company, eligible customers will be able to take their crypto holdings. This ability comes from their collaboration with Coinbase. This group includes clients who use BlockFi interest accounts, private client services, and retail loans.
The collaboration guarantees a system for customers to access and control their crypto holdings. Qualified customers can start their withdrawal process through the Coinbase platform.
Blocks filed for bankruptcy in November 2022. This came after FTX’s collapse. CEO Zac Prince provided testimony on behalf of the government in Bankman-Criminal Field’s trial.
Don’t Miss Out: Recover Your Crypto with BlockFi
Prince stated that the founder of FTX’s actions caused BlockFi to go bankrupt. BlockFi set a deadline of April 28, 2024, for the majority of its customers to request withdrawals. In 2023, the company announced its closure and the plan to return customer’s crypto holdings.
The lender notified customers on Thursday that the deadline for excluding digital assets from the current estate distribution has passed.
BlockFi will send instructions to clients for creating a Coinbase account. They can withdraw digital assets with this account setup. This is possible regardless of whether they have an existing or newly approved Coinbase account.
The company is providing an extra chance for customers who missed the withdrawal deadline. They are still free to leave the BlockFi platform. Customers risk having their holdings converted into cash if they fail to open an authorized Coinbase account. Clients will then get the liquidated funds by the procedure followed by the business.
BlockFi Urges Download of Vital Docs Before Shutdown
Future payout rounds may make use of Coinbase by the plan administrator. FTX-recovered cash might get paid during these rounds. The administrator would only be able to distribute money for further distributions if they didn’t have this capacity.
BlockFi declared that they have no plans to collaborate with other companies to distribute cryptocurrency. The company cautioned investors about possible fraud attempts by unaffiliated parties.
The advisory highlights the necessity of exercising prudence when handling matters about cryptocurrency. In the past, BlockFi has experienced fraudulent behaviour. The emails that the claimants received were fraudulent and seemed to be official correspondence. These emails purported to give them the chance to withdraw their remaining amounts right away.
BlockFi encouraged customers to retrieve their transaction history and tax documents. BlockFi gave this advice before the shutdown took place. The aim was to ensure that clients have access to all required information and papers.
