Is BlockFi Finally Repaying Customers? Here’s What We Know

The troubled crypto lender BlockFi recently moved a large tranche of its assets, giving onlookers the idea that creditors’ repayment is around the corner.

According to on-chain data from the blockchain intelligence firm Arkham, the crypto lending firm sent $184.96 million in USDC to Coinbase Prime, a brokerage platform offering institutional asset management. The latest transaction comes three months after the firm revealed plans to commence repayment.

𝗔 𝗕𝗹𝗼𝗰𝗸𝗙𝗶-𝗳𝘂𝗻𝗱𝗲𝗱 𝗮𝗰𝗰𝗼𝘂𝗻𝘁 𝗷𝘂𝘀𝘁 𝘀𝗲𝗻𝘁 $𝟭𝟵𝟬𝗠 𝗨𝗦𝗗𝗖 𝘁𝗼 𝗖𝗼𝗶𝗻𝗯𝗮𝘀𝗲.

Repayments for BlockFi customers soon? pic.twitter.com/tmjUdKhHlf

— Arkham (@ArkhamIntel) October 11, 2024

BlockFi to Repay Creditors

In July, BlockFi revealed that it would commence repaying customers that month. However, no public data shows that the crypto lender kept its promise.

This, though, has not stopped the firm from raising enough money to reimburse creditors. Last month, Arkham’s research showed that BlockFi had on-chain assets worth around $300 million.

Fast-forward to the present, the firm has moved over half of these assets to a separate wallet on Coinbase Prime. At the time of writing, over $116 million of crypto assets remain in the lending platform’s custody. With no recent communication via its official social accounts, BlockFi leaves customers wondering when they will receive their assets.

BlockFi’s Financial Woes

Due to its ties with Sam Bankman-Fried’s Alameda Research, BlockFi was one of the firms that saw the most financial impact from the FTX crash. After entering bankruptcy in November 2022, the lending firm commenced plans to reimburse affected customers. Part of the process involved users submitting withdrawal requests for their assets.

The firm announced Coinbase as its distribution partner in May to aid its repayment process. At the time, the announcement hinted that creditors would be required to create a Coinbase account to access their funds.

With BlockFi in its post-bankruptcy wind-down stage, creditors are eager to reclaim their assets, which have been stuck in the troubled crypto lending firm for about two years.