Beginning in July, the bankrupt cryptocurrency lending firm BlockFi plans to temporarily distribute cryptocurrency assets through Coinbase for the first time.
The company states that appropriate account holders could anticipate receiving email notices about the distribution. This will happen in phases over the next few months, in a recent post on X. It is crucial to remember that, owing to regulatory restrictions, non-US consumers will not get any money.
There is still a chance to get money for people who didn’t finish identification verification by May 10 or who miss the April 28 withdrawal deadline. If the person has an active, verified Coinbase account, these assets will be provided in type.
However, if an official Coinbase account doesn’t exist, the assets will be in cash and given out in line with the plan. BlockFi and Coinbase will provide Coinbase users with new avenues for earning interest on their crypto holdings. The collaboration between these two prominent platforms will have a significant impact on the cryptocurrency market. Thus, opening up new possibilities for investors and expanding the reach of decentralized finance.
To enable payouts in the future, including those funds gotten from FTX, Coinbase will be the preference platform which the Plan Administrator utilizes. In the absence of this collaboration, the Administrator’s cash distribution options will be in limitation to successive rounds. Customers who aren’t able to register for a Coinbase account will get their payouts in cash.
BlockFi Highlights Risks of Scam Schemes
The company also advised its clients to be on the lookout for efforts at scams by unaffiliated parties purporting to provide cryptocurrency distributions. The cryptocurrency lender went on to say that it will not be collaborating with any other companies to distribute cryptocurrency.
The alert was out at a time when cryptocurrency con artists were preying on the creditors of insolvent digital asset companies, BlockFi and FTX. Claimants of FTX and BlockFi got lure in March by emails that looks authentic and promises immediate withdrawals of their remaining assets.
