BlockFi, a major player in the crypto lending business, recently shut down its gateway. This move will shift the corporation’s management, which has been dealing with financial difficulties ever since it declared bankruptcy at the end of 2022. In terms of asset management and administration, BlockFi has joined hands with Coinbase, the premier US-based crypto exchange.
Even though a particular shut date has yet to be announced, BlockFi e-mailed all customers with the steps for moving assets to Coinbase accounts. Clients who don’t remove their assets by April 28, 2024, and provide for identity verifications before May 10, 2024, will be able to complete this process at Coinbase.
BlockFi obliges its clients to download this information and the related documents in a timely manner. Besides, the Plan Administrator now has the chance to select Coinbase as a future payment method, including any funds coming from FTX recovery. FTX took this step after it published its revised strategy, with BlockFi among the key partners in the plan.
BlockFi secures $250 million in FTX settlement
In its new debt payments plan, FTX has ranked BlockFi as the senior secured lender. In March of this year, FTX agreed upon a settlement that called for an initial payment of $250 million. Out of the overall $874 million settlement, BlockFi is part of this payment plan. The purpose of this settlement is to pay BlockFi for the assets that were left on the FTX exchange and for Loans given to Alameda Research, thus cementing the relationship between the two parties.
BlockFi was among the casualties of FTX bankruptcy in November 2022, which led to the suspension of payments to its customers accrued from its collapse as the firm was seriously hit. Also, not least, BlockFi was regarded as FTX’s greater creditor due to the depth of this debt settlement procedure. The settlement agreement amplifies FTX’s efforts to deal with the claims of BlockFi and other stakeholders, thus making them vital to the resolution of financial disputes.
BlockFi closure shifts asset control to Coinbase
The shutdown of BlockFi’s digital utility and the collaboration between BlockFi and Coinbase has several serious consequences for the crypto market. Coinbase is empowered to carry out asset distribution for BlockFi with a view to halting operations and ultimately enhancing client experience due to the ongoing financial rehabilitation. Clients are expected to meet given deadlines for withdrawal and personal information verification in a bid to assist in the flawless transition of their possessed assets to Coinbase.
