BlockFi to Start Interim Crypto Distributions Through Coinbase This Month

BlockFi will begin temporary cryptocurrency distributions via Coinbase this month.

BlockFi filed for Chapter 11 bankruptcy protection following the collapse of FTX in November 2022.

Bankrupt crypto lender BlockFi announced on Thursday that it will begin its first interim cryptocurrency distributions through Coinbase (COIN) in July 2024.

BlockFi became the first victim of the contagion caused by the collapse of cryptocurrency exchange FTX in early November 2022, filing for Chapter 11 bankruptcy protection on November 28, 2022, less than a month after halting withdrawals from the platform. BlockFi then began the process of asking the court to greenlight customer withdrawals that had been locked on the platform.

In September 2023, creditors approved the bankruptcy reorganization plan, and in early 2024, BlockFi reached a roughly $1 billion settlement with the heirs of FTX and Alameda Research, bringing BlockFi one step closer to a full recovery for customers.

“Distributions will be processed in batches over the coming months and eligible customers will receive a notification to the BlockFi account email on file,” the announcement reads. “Please note that Customers outside of the US will not be able to receive funds at this time due to regulatory requirements that apply to them.”

Customers who did not withdraw their funds by the earlier deadlines can contact the bankruptcy administrator and have the opportunity to use Coinbase for future distribution rounds.

Read More: BlockFi Says It’s Taken a Big Step in Escape from Bankruptcy