BlockFi, a major crypto lender, revealed plans to shut down its web platform this month and entered into a strategic partnership with Coinbase to facilitate crypto withdrawals for its customers. The move marks a significant transition for the New Jersey-based company and its user base.
Coinbase Collaboration: A New Path for Crypto Withdrawals
In an effort to streamline the withdrawal process for its customers, BlockFi has partnered with Coinbase, a leading cryptocurrency exchange. Eligible users, including BlockFi interest account holders, retail lending customers, and private customers, will now have the option to withdraw their crypto assets through Coinbase.
BlockFi CEO Zac Prince attributes the company's decision to shut down its web platform and partner with Coinbase to the fallout from FTX's collapse. Prince, who previously testified as a government witness in the criminal trial of FTX founder Bankman-Fried, suggests that FTX's actions had a direct impact on BlockFi's financial stability, leading to its bankruptcy filing in November 2022.
Read also: The Rise and Fall of FTX: The Dramatic Journey of a Cryptocurrency Exchange
Withdrawal deadline not respected? BlockFi offers buyback via Coinbase
While BlockFi had set April 28, 2024 as the deadline for most customers to request withdrawals, the company extended an opportunity to those who missed the deadline. Customers now have the option to withdraw their assets from the BlockFi platform or create a Coinbase account to facilitate the process. For those who are unable to create a Coinbase account, BlockFi can liquidate their assets into cash and distribute them accordingly.
BlockFi emphasizes the importance of customers downloading essential documents, including transaction history and tax documents, before the platform shuts down. Additionally, the company urges caution against potential scam attempts from third-party entities, as it does not plan to collaborate with other providers for the distribution of cryptocurrencies.
As BlockFi undergoes this transition and the shutdown of its web platform, the partnership with Coinbase offers a streamlined solution for customers looking to access their crypto holdings. This strategic move reflects BlockFi's commitment to improving user experience and meeting the challenges of the evolving crypto landscape.