BlockFi Collaborates with Coinbase for Asset Distribution Post FTX Fallout

According to a recent blog post, BlockFi, which emerged from bankruptcy following the collapse of FTX last year, announced that it will be shutting down its online platform by the end of May.

Although the exact timing of the closure is still being discussed, the firm has made it plain that customers will no longer be able to use the BlockFi platform after the deadline has passed.

BlockFi has teamed with Coinbase, a well-known cryptocurrency exchange, to make sure that its clients have a seamless transition. This partnership allows qualifying consumers to easily withdraw their cryptocurrency holdings. Eligible consumers will get an email with instructions on how to make withdrawals using Coinbase.

“The Plan Administrator will have the ability to use Coinbase for future rounds of distributions, including distributions based on funds recovered from FTX,” BlockFi stated.

Precautionary Measures

BlockFi guaranteed clients that all payouts will be made in cash in the event that they are unable to open Coinbase accounts. Prior to the platform’s closure, users are strongly advised to save their transaction history and other crucial data.

Because of the erratic nature of the cryptocurrency market and its close relationship to FTX, BlockFi faced bankruptcy in November. But, BlockFi was able to escape from bankruptcy procedures and started paying back creditors less than a year later.