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BlockFi closes online platform and partners with Coinbase for cryptocurrency payments

This decision may be a reaction to changing market and regulatory conditions, as well as the need to focus on more profitable areas of the business.

Date: 2024-05-10 Author: Łukasz Michałek
BlockFi closes online platform and partners with Coinbase for cryptocurrency payments

Struggling cryptocurrency lender BlockFi announced Thursday that it plans to close its online platform this month and is partnering with Coinbase to distribute funds to customers.

The New Jersey-based company said its partnership with Coinbase will allow BlockFi’s eligible interest-only accounts, retail lenders and private customers to withdraw their cryptocurrency holdings.

BlockFi declared bankruptcy in November 2022 following the collapse of FTX. CEO Zac Prince, who testified as a government witness in the Bankman-Fried criminal trial , claims that the FTX founder’s actions directly caused BlockFi’s bankruptcy.

Missed the BlockFi withdrawal deadline? You can still get your cryptocurrencies back

In 2023, BlockFi announced that it was closing and planning to return crypto holdings to customers. For most customers, the deadline for requesting withdrawals was April 28, 2024.

On Thursday, the lender told customers that since the deadline for withdrawing their digital assets from the current real estate distribution had passed, customers would be instructed to set up a Coinbase account. Through this method, they can withdraw their digital assets if they have an existing or new approved Coinbase account.

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The company is also giving another chance to those who missed the withdrawal deadline. They will still have the opportunity to withdraw from the BlockFi platform. For those who fail to set up an approved Coinbase account, their assets can be converted into cash and distributed to them accordingly.

BlockFi tells customers to download important documents before closing the platform

The plan administrator will have the ability to use Coinbase for upcoming distribution rounds, which may include withdrawals of funds recovered from FTX. Without this ability, the administrator would be limited to distributing cash for subsequent payouts.

BlockFi said it has no plans to work with any additional cryptocurrency distribution providers. As such, it warned investors to remain vigilant against potential fraud attempts by third parties. BlockFi has previously been the target of fraudulent activities in which claimants received deceptive emails resembling legitimate communications, falsely promising immediate payment of remaining balances.

In addition, customers were encouraged to download their transaction history, tax documents and any other relevant information from BlockFi before the system was shut down.

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Łukasz Michałek
Łukasz Michałek
Founder of the rapidly developing cryptocurrency channel "Biblia Kryptowalut" on YouTube. He also co-creates the Arena Trading group with Marek. Łukasz is fascinated and passionate about blockchain technology and cryptocurrencies, which constitute the central element of his activity in the cryptocurrency industry.
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