Crypto lender BlockFi, previously valued at $3 billion, has announced that it will be closing its website and partnering with Coinbase for distributing funds recovered from bankrupt FTX. The company, which emerged from bankruptcy in 2023 due to the collapse of FTX, revealed in a blog post on May 9 that it will be discontinuing its web platform in May.

BlockFi has chosen Coinbase as its distribution partner to ensure that eligible clients can continue to make crypto withdrawals from their BlockFi Interest Account (BIA), Retail Loan, and Private accounts. The company has stated that clients will no longer have access to the BlockFi platform after the deadline.

To facilitate the distribution of funds among creditors and customers, BlockFi has teamed up with Coinbase to provide continuity in crypto withdrawals. Eligible customers will receive further instructions on how to make withdrawals via Coinbase through their registered email accounts.

For customers who are unable to open a Coinbase account, BlockFi has assured that all distributions will be made in cash. It is recommended that customers download their transaction history, tax forms, and other important data from the platform before the shutdown date.

BlockFi’s bankruptcy journey began in November, with the company filing for Chapter 11 protection due to market volatility and its exposure to FTX. Less than a year later, BlockFi successfully emerged from bankruptcy proceedings and is now focused on repaying its creditors.

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