BlockFi Confirms Interim Crypto Distributions in July

BlockFi clients should be aware that all communications will be conducted through official email channels.

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• Bankrupt crypto lender BlockFi is set to begin its first interim crypto distributions through Coinbase this month.
• The distributions will be processed in batches over the coming months as part of a partnership with Coinbase.

Notifying Eligible Clients

Eligible clients will receive notifications via the email associated with their BlockFi account. It is crucial to keep email addresses up-to-date to avoid delays in receiving distribution notifications.

Non-US clients are currently restricted from receiving funds due to regulatory requirements. BlockFi previously partnered with Coinbase to allow clients access to their funds following the shutdown of its web platform in May.

Following FTX’s collapse in November 2022, BlockFi entered bankruptcy proceedings. In 2023, BlockFi announced its shutdown and laid out a plan to refund customers’ digital currency holdings.

Approval of Repayment Plan

In September 2023, the bankruptcy court approved BlockFi’s Chapter 11 repayment plan, aiming to settle debts with approximately 10,000 creditors.

BlockFi’s total liabilities range from $10 billion to over 100,000 creditors, with substantial amounts owed to its largest creditors and the now-bankrupt crypto hedge fund Three Arrows Capital.

In March 2024, BlockFi reached a tentative agreement worth $875 million with the estates of FTX and Alameda Research, resolving claims and counterclaims.

During Sam Bankman-Fried’s criminal trial, BlockFi’s CEO Zac Prince pointed to FTX founder’s actions as a primary reason for BlockFi’s bankruptcy.