Bankrupt crypto BlockFi will begin distributing crypto assets through Coinbase in July. Eligible account users will receive email alerts from BlockFi, with payouts taking place in phases over the next months. However, non-US consumers will not get payments due to regulatory restrictions.

In May, BlockFi collaborated with Coinbase to enable crypto withdrawals for qualifying BlockFi Interest Account, Retail Loan, and Private Clients. Although the initial window for estate fund withdrawals has closed, BlockFi is now working with Coinbase to assist with the next steps. Clients will receive thorough instructions via email on how to create a Coinbase account and access their assets.

Those who missed the withdrawal deadline or failed to complete identity verification can still get funds. Individuals with an open and approved Coinbase account will have access to assets in kind. If not, the assets may be converted to cash and distributed appropriately.

The Plan Administrator will use Coinbase for future disbursements, including cash recovered from FTX. Without this collaboration, subsequent rounds may only be cash-based. Clients who are unable to open a Coinbase account will receive their amounts in cash.

However, BlockFi urges clients to be wary of fraud attempts by third-party entities purporting to offer cryptocurrency distributions. The company reiterates that it will not work with any other providers for these releases. Crypto scammers have targeted creditors of failing companies such as FTX and BlockFi, sending legitimate-looking phony emails claiming quick payouts.