In a shocking turn of events, crypto lender BlockFi has announced its plans to close its web platform this month. After filing for bankruptcy back in November 2022 following FTX’s collapse, the New Jersey-based firm is now partnering with Coinbase to distribute funds to its clients. CEO Zac Prince has pointed the finger at FTX founder Bankman-Fried for the actions that led to BlockFi’s bankruptcy.
BlockFi clients with eligible accounts, including BlockFi Interest Account, Retail Loan, and Private Clients, will now have the opportunity to withdraw their crypto holdings through Coinbase. Those who missed the withdrawal deadline still have the option to withdraw from BlockFi’s platform. However, if they do not set up an approved Coinbase account, their assets may be liquidated into cash and distributed accordingly.
Concerns and Caution
As BlockFi moves forward with its distribution plans, the company has stated that it does not intend to collaborate with any other providers for cryptocurrency distributions. This decision comes as a warning to investors to remain vigilant against potential scam attempts from third-party entities. BlockFi has previously been the target of fraudulent activity, with claimants receiving misleading emails promising immediate withdrawals. Customers are urged to retrieve their transaction history, tax documents, and any other relevant information from BlockFi before the shutdown takes place.
The transition from BlockFi to Coinbase marks a significant change in the crypto lending landscape. As investors navigate this shift, it is essential to stay informed and exercise caution to protect their assets. With BlockFi’s closure on the horizon, clients must take the necessary steps to ensure a smooth transition to Coinbase for the withdrawal of their digital assets. By staying proactive and informed, investors can safeguard their investments during this tumultuous time.
