Less than half of non-US customers at bankrupt cryptocurrency lender Blockfi have stepped forward to claim assets at the May 15th deadline, the lender said in a blog post Wednesday.
Blockfi filed for bankruptcy in November 2022 as contagion from the collapse of FTX spread to the crypto industry. The company later emerged from bankruptcy, and announced plans in July 2024 to distribute 100% of customer claims when filing for bankruptcy.
So far, 97% of US customers have charged for distribution, while only 43% of non-US customers have received the distribution. It should be noted that arrangements for distribution for US customers were easier and started earlier than non-US customers involving both US and Bermuda courts.
The possible reason for the shortage of claimants is that people think the message from Block Phiss asking customers to choose a payment method is a spam or phishing attack. The company said it is working with security experts to reassure its customers of legitimacy.
“Blockfi is doing everything we can to make the final distribution to all previous customers,” BlogPost said. “Some customers may need to complete a ‘knowing the customer’ identity verification process to receive the distribution. By May 15, 2025, we highly recommend that you have not received your distribution or complete this process to complete this process. ”
We and our non-US customers had to do KYC to use Blockfi in the first place, so this is still unlikely to result in a block that those who claim distribution will trip over.
According to Blockfi, the verification process that requires two forms of ID takes 10 minutes to run. After completion, review and approval, the client can expect to receive the processed payment within 45 days.
The Bankruptcy Act states that assets that customers are not billed by the May 15th deadline will be shared among other unsecured creditors.
