BlockFi Announces Deadline for Crypto Withdrawal Requests

The troubled crypto lender BlockFi announced in a recent tweet that customers whose funds are stuck in the platform have until April 28th at 11:59 PM UTC to submit their withdrawal requests. The latest announcement is part of the company’s efforts to make affected users whole.

This is a reminder that the deadline to submit your initial estate crypto withdrawal request(s) on the BlockFi platform is April 28, 2024 at 11:59 PM UTC.

— BlockFi (@BlockFi) April 25, 2024

BlockFi to Reimburse Users

BlockFi’s woes trail back to early 2022. As other crypto-based platforms like Celsius and Terraform Labs crashed, firms like BlockFi were shaken. The crypto lender saw its market valuation drop from $3 billion to only $1 billion. Its financial crunches were further exacerbated when FTX crashed. The firm revealed a huge loan stuck in FTX’s sister company, Alameda Research.

The crypto lending firm had around $1 billion in FTX and its affiliated firm, a report from CNBC confirmed. In November 2022, BlockFi filed for Chapter 11 bankruptcy protection. Since then, it has gathered customers’ funds to reimburse them.

In October 2023, the troubled crypto lender emerged from bankruptcy and began processes to refund affected customers. Through emails and tweets, the firm and its top executives have communicated several actions customers should take to recover their money. On January 22nd, BlockFi refunded over $500 million worth of cryptocurrencies from its wallet product to about 130,000 affected customers.

In February 2024, the company informed users via an email that it would refund 20% to 40% of interest-earning assets to customers. BlockFi added that it would facilitate withdrawals through account types to avoid congestion and ensure a smooth withdrawal process.

BlockFi added in its latest announcement that identity verification information requests from users must be submitted by May 3rd at 11:59 PM UTC.

BlockFi’s Founder to Give Up Personal Assets

BlockFi’s founder, Zac Prince, revealed last month that he would give up his personal crypto assets in the lending platform to increase the recovery funds for customers.

On the other hand, BlockFi had previously explained that it would increase customers’ recoverable funds as it receives its assets stuck in the FTX estate.