BlockFi To Start Crypto Distributions Through Coinbase

Bankrupt cryptocurrency BlockFi will begin distributing crypto assets through Coinbase in July. Eligible account users will receive email alerts from BlockFi, and payments will be phased in over the coming months. However, consumers outside the U.S. will not be able to receive payments due to regulatory restrictions.

In May, BlockFi partnered with Coinbase to enable crypto withdrawals for qualified BlockFi Interest Accounts, Retail Credit, and Private Clients. While the initial window for inheritance withdrawals has closed, BlockFi is now working with Coinbase to help with the next steps. Clients will receive comprehensive instructions via email on how to set up a Coinbase account and access their assets.

Those who miss the withdrawal deadline or fail to complete identity verification can still receive funds. Individuals with an open and verified Coinbase account will have access to the in-kind assets. Otherwise, the assets can be converted to cash and distributed as appropriate.

The Plan Administrator will use Coinbase for future payouts, including cash recovered from FTX. Without this collaboration, future rounds may be cash-only. Customers who are unable to open a Coinbase account will receive their amounts in cash.

However, BlockFi is warning its customers to be wary of scams from third-party entities claiming to offer cryptocurrency distributions. The company reiterates that it will not work with any other providers for these releases. Crypto scammers have targeted creditors of failed companies like FTX and BlockFi, sending legitimate-looking fake emails claiming fast payouts.