BlockFi, a crypto lender that filed for Chapter 11 bankruptcy protection in November 2022, has announced that it will begin distributing crypto assets to its customers through Coinbase starting in July 2024.
In the aftermath of the collapse of crypto exchange FTX, BlockFi faced financial difficulties and halted customer withdrawals before eventually filing for bankruptcy. Since then, the company has been working on a restructuring plan to recover funds for its clients.
After a lengthy process, creditors approved BlockFi’s bankruptcy restructuring plan in September 2023. The company also reached a settlement with the estates of FTX and Alameda Research for nearly $1 billion in early 2024, bringing it closer to resolving its financial obligations.
The upcoming distributions will be processed in batches over the next few months, with eligible clients receiving notifications to their BlockFi account email addresses. It’s important to note that non-US clients are currently unable to receive funds due to regulatory requirements.
For clients who missed earlier withdrawal deadlines, there is still an opportunity to claim their funds. They can reach out to the bankruptcy administrator, who may utilize Coinbase for future rounds of distributions.