BlockFi, which is no longer operating as a business, plans to shut down its web platform at the end of the month. It will partner with Coinbase, using Coinbase's services for distributing funds.

This change is part of the bankruptcy claims process and ensures that BlockFi Interest Account (BIA) holders, Retail Loan clients, and Private Clients can continue to withdraw funds.

Clients eligible for crypto can access their funds in cash if they have an active or verified Coinbase account. This applies to those who have not withdrawn crypto from BlockFi’s platform by April 28 and have verified their identity by May 10.

Cash will be provided to eligible clients who have not set up a Coinbase account or cannot do so.

BlockFi has warned users about potential scams and clarified that it has no distribution agreements with other crypto companies.

The bankruptcy plan includes a plan administrator who will manage distributions via Coinbase, including funds recovered from FTX.

As of March, BlockFi expected about $875 million from FTX, with priority given to the first $250 million; the rest depends on FTX's ability to pay its customers.

Without Coinbase, the plan administrator can only distribute cash, not cryptocurrency.

BlockFi halted withdrawals on November 10, 2022, due to uncertainty around FTX's bankruptcy. A few weeks later, BlockFi filed for bankruptcy, identifying FTX as its second-largest creditor.

In October 2023, BlockFi emerged from bankruptcy and began user payments this year.