BlockFi clients have to sign up for Coinbase before August 23 to receive their crypto claims. Other clients will receive cash.
In the most recent development, BlockFi, a defunct crypto lender, announced that its clients could receive 100% of the eligible claims based on their current recovery efforts.
This announcement coincides with the start of the crypto lender’s FTX claim sale process earlier this week.
BlockFi to Pay From Proceeds of FTX Claims
Earlier this month, in July, the Plan Administrator – BlockFi Estate – sold the lender’s outstanding claims against bankrupt crypto exchange FTX for over the face value of the claims.
“As a result, the BlockFi Estate will be distributing 100% of the dollarized petition date value on all allowed customer claims,” noted the defunct crypto lender.
Although the date of claim settlement with clients is uncertain, BlockFi stated that it would occur in the near future.
The BlockFi Estate is prepared to prioritize the protection of client assets during the development of the final distribution plan.
The crypto lender has indicated that the final distributions will be received by US clients within the next 90 days.
BlockFi is pleased to announce that, based on the BlockFi Estate’s recovery efforts, clients can now expect to receive 100% of your eligible claim from the BlockFi Estate.
— BlockFi (@BlockFi) July 25, 2024
It was also stated that eligible clients must create a Coinbase account by August 23, 2024, in order to receive the distributions in crypto assets.
However, customers who have submitted their claims to BlockFi by the deadline and do not have a Coinbase account will receive their eligible distributions in cash.
International Clients Will Have to Wait Longer
BlockFi also advised its international clients that they may need to wait a little more due to Bermuda’s regulatory requirements.
These regulations would require the organization to perform additional identity verification and “Know Your Customer” (KYC) diligence before conducting distributions.
However, to guarantee timely distributions, the Plan Administrator and Joint Liquidators would expedite the necessary diligence.
The cryptocurrency lender stated that it would contact overseas customers to do due diligence and ensure timely distributions.
BlockFi began the sale process for its FTX claims on June 24 and completed it by July 10.
Over $874.5 million in principal settlement was achieved by the crypto lender with FTX and Alameda.
