BlockFi, a leading centralized lending platform, announced this month that it plans to shut down its web platform and called for alternative measures to be implemented to ensure uninterrupted access to user funds.
BlockFi Announces Shutdown of Web Platform, Facilitates Cryptocurrency Withdrawals via Coinbase
To facilitate a seamless transition for its customers, BlockFi announced a partnership with cryptocurrency exchange Coinbase, allowing eligible users to access cryptocurrency withdrawals through the Coinbase platform.
The decision to work with Coinbase as a distribution partner comes as BlockFi prepares to shut down its web platform, which serves as a gateway for users to manage their crypto assets.
With the upcoming closure, BlockFi aims to provide continuity in cryptocurrency withdrawals for its customers, especially those with BlockFi Interest Accounts (BIA), Personal Loans and Private Client accounts.
“BlockFi is pleased to announce that we have appointed Coinbase as our distribution partner to ensure the continuity of cryptocurrency withdrawals available to our eligible BlockFi Interest Account (BIA), Personal Loan and Private Clients,” the firm said in a recent announcement.
According to BlockFi, customers who missed the April 28 withdrawal deadline and the May 10 verification deadline still have the opportunity to access their assets through a verified Coinbase account.
This strategic collaboration ensures that affected clients maintain control over their crypto assets without immediate conversion to cash.
However, for customers who are eligible to withdraw cryptocurrency but cannot meet the specified deadlines and do not have a verified Coinbase account, their assets will be converted to cash and distributed as stated in the plan.
The decision to shut down the web platform follows a series of challenges faced by BlockFi, including a suspension of customer withdrawals in November 2022 and subsequent filing for Chapter 11 bankruptcy protection.
*This is not investment advice.
