Ethereum
BlockFi Set to Bring Bitcoin and Ethereum Back to Customers: Here’s How It Will Work
Bankrupt crypto lending firm BlockFi will begin repaying its former customers — in crypto — this month after its ignominious collapse last year.
BlockFi Liquidation Administrator said This week it said it had achieved the “best possible outcome for customers.” But if you’re a creditor, how do you get your money back?
To get started, you’ll need a Coinbase account. The bankrupt cryptocurrency company is using the largest U.S. exchange to distribute funds that disappeared after BlockFi collapsed last year.
“At BlockFi’s direction, Coinbase will continue to attempt to distribute crypto assets on a weekly or monthly basis while this program is active, provided the creditor has an eligible account with Coinbase,” the exchange said. said on its website.
Each creditor’s Coinbase information must match their BlockFi credentials, as BlockFi customers cannot use someone else’s account to recover their funds.
Coinbase added that it will not make distributions to non-U.S. customers, although it has “worked tirelessly with the joint liquidators of BlockFi International” to find a repayment plan for those creditors.
Customers expecting a cryptocurrency refund will first receive an email from BlockFi before receiving a Coinbase notification about the deposit.
Former BlockFi customers hoping to get money back will have their claims handled separately by financial advisory firm Kroll and their payment processing partner, Digital Disbursements.
BlockFi went bankrupt last year, one of many cryptocurrency companies hit by the To fall of cryptocurrency company FTX that collapsed in 2022. The lender, which offered its customers high-yield crypto accounts, first suspended withdrawals on its platform.
The company is then exclusively said Decrypt that he was considering bankruptcy before actually Chapter 11 filing in November 2022.
BlockFi, a New Jersey company, had more than $1.2 billion in assets tied up in cryptocurrency giant FTX and its trading arm Alameda Research before they went bankrupt. The trustee said selling BlockFi’s claims on FTX “at a substantial premium to their face value” helped recoup the funds needed to repay customers.
Edited by Ryan Ozawa.