BlockFi Shuts Web Platform, Teams Up with Coinbase

BlockFi, a prominent crypto lender, has revealed plans to close its web platform this month and has entered a strategic partnership with Coinbase to facilitate crypto withdrawals for its clients. This move marks a significant transition for the New Jersey-based firm and its user base.

Coinbase Collaboration: A New Avenue for Crypto Withdrawals

In an effort to streamline the withdrawal process for its clients, BlockFi has forged a partnership with Coinbase, a leading cryptocurrency exchange. Eligible users, including BlockFi Interest Account holders, Retail Loan clients, and Private Clients, will now have the option to withdraw their crypto assets through Coinbase.

BlockFi’s CEO, Zac Prince, attributes the company’s decision to close its web platform and partner with Coinbase to the aftermath of 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 directly impacted BlockFi’s financial stability, leading to its bankruptcy filing in November 2022.

Also Read: The Rise and Fall of FTX: A Cryptocurrency Exchange’s Dramatic Journey

Missed Withdrawal Deadline? BlockFi Offers Redemption via Coinbase

While BlockFi had set April 28, 2024, as the deadline for most clients to request withdrawals, the company has extended an opportunity for those who missed the deadline. Clients now have the option to withdraw their assets from BlockFi’s platform or establish a Coinbase account to facilitate the process. For those who fail to set up a Coinbase account, BlockFi may liquidate their assets into cash and distribute them accordingly.

BlockFi emphasizes the importance for clients to download essential documents, including transaction history and tax documents, before the platform closure. Additionally, the company urges caution against potential scam attempts from third-party entities, as it does not plan to collaborate with any additional providers for cryptocurrency distributions.

As BlockFi undergoes this transition and closure of its web platform, the partnership with Coinbase offers a streamlined solution for clients seeking to access their crypto holdings. This strategic move reflects BlockFi’s commitment to enhancing user experience and navigating challenges in the evolving crypto landscape.