Bankrupt crypto lender BlockFi announced on Thursday that it will start its initial interim cryptocurrency distributions through Coinbase (COIN) in July 2024.
BlockFi, one of the early casualties of the FTX exchange collapse in November 2022, filed for Chapter 11 bankruptcy protection on November 28, 2022, just weeks after halting withdrawals. Since then, BlockFi has been navigating the legal process to obtain court approval for the release of customer funds locked within the platform.
In September 2023, creditors approved BlockFi’s bankruptcy restructuring plan. Early in 2024, BlockFi settled with the estates of FTX and Alameda Research for nearly $1 billion, significantly advancing towards restoring customer assets.
“The distributions will be processed in batches over the coming months, and eligible clients will receive notifications via the email associated with their BlockFi accounts,” stated the announcement. It also noted that non-US clients would not receive funds at this time due to regulatory restrictions.
Clients who missed earlier deadlines for fund withdrawal can contact the bankruptcy administrator, who will facilitate the use of Coinbase for future distribution rounds.
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