BlockFi, known for its cryptocurrency lending solutions, recently announced the closure of its operations. This strategic change comes after the declaration of bankruptcy at the end of 2022, and now, asset management will be transferred to Coinbase, one of the main cryptocurrency platforms in the United States.
A specific date for the closure of BlockFi’s activities has not yet been announced, but the company has already started the process of migrating customer assets to Coinbase. According to an email communication to customers, those who do not transfer their assets by April 28, 2024, and do not complete identity verifications by May 10, 2024, will have their assets automatically moved to Coinbase.
It is essential that BlockFi customers download all necessary information and documents within the established deadline. With the change, the Plan Administrator can now designate Coinbase as the payment method for future transactions, including possible receipts from agreements with FTX.
In a recent reorganization plan, FTX recognized BlockFi as the primary secured creditor, committing to an initial payment of $250 million in March of this year. This agreement is part of a broader strategy that includes a total of US$874 million in payments, aimed at covering debts for assets held on the FTX platform and loans granted to Alameda Research.
The collapse of FTX in November 2022 had a significant impact on BlockFi, which was forced to suspend payments to its customers. This episode marked BlockFi as the largest creditor in the FTX liquidation process, highlighting the importance of the recent agreement in resolving the financial disputes involved.
With the closure of BlockFi, the management of its assets now passes into the hands of Coinbase. This move is part of a strategy to wind down BlockFi operations in an organized and effective manner, improving the customer experience through continued support from Coinbase during the financial transition.
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Source: https://portalcripto.com.br/blockfi-encerra-operacoes-e-coinbase-assumira-gestao-de-ativos/
