BlockFi to Start Interim Crypto Distributions Through Coinbase This Month

As a seasoned financial analyst who has closely followed the crypto space for years, I’ve seen my fair share of ups and downs. The news that bankrupt crypto lender BlockFi will begin interim crypto distributions through Coinbase in July 2024 is a significant development in the long-drawn-out saga that began with FTX’s collapse in November 2022.

Starting in July 2024, bankrupt crypto lender BlockFi has planned the initial distribution of cryptocurrencies through Coinbase (COIN), as they announced on Thursday.

In early November 2022, BlockFi became the initial casualties following the failure of crypto exchange FTX. Consequently, they applied for Chapter 11 bankruptcy protection on November 28, 2022 – just a few weeks after freezing customer withdrawals from their platform. Since then, BlockFi has initiated court proceedings to allow customers to access their locked funds.

In September 2023, the creditors endorsed BlockFi’s bankruptcy restructuring proposal. By early 2024, BlockFi reached a settlement worth almost a billion dollars with the estates of FTX and Alameda Research, moving BlockFi significantly closer to restoring full services for its customers.

In the upcoming months, the distributions will be handled in groups. Once you’re qualified, you’ll get a notification to the email address associated with your BlockFi account. However, please bear in mind that non-US clients currently cannot receive funds because of the specific regulatory restrictions that apply to them.

Clients who missed the previous withdrawal deadlines can contact the bankruptcy administrator to explore the option of utilizing Coinbase for future disbursements.