With just weeks left before the final deadline, BlockFi is warning its non-U.S. customers to claim their distributions or risk forfeiting them. As of April 2, only 43% of non-U.S. clients have done so, according to the company’s latest blog post. In contrast, 97% of U.S. customers have already received their funds.
The bankrupt crypto lender has set May 15 as the final date for claims. Assets left unclaimed by that date will be redistributed among other unsecured creditors, as dictated by the bankruptcy code. BlockFi is pushing for action, citing concerns that many customers may be ignoring legitimate communications.
“BlockFi is doing all it can to make final distributions to all former customers,” the firm said in its statement.
The blog emphasized that some users may mistake emails from the BlockFi Estate as phishing attempts, potentially delaying the claims process.
Delays and Jurisdictional Barriers
Distributions for U.S. customers began earlier and were more straightforward due to domestic legal processes. For non-U.S. clients, the process required coordination between courts in the United States and Bermuda, leading to slower progress.
BlockFi, which filed for Chapter 11 bankruptcy in November 2022 following the collapse of FTX, announced in July 2024 that it would return 100% of the dollar value of customer claims at the time of the filing. Interim crypto distributions began through Coinbase in July 2024.
In September 2023, creditors approved BlockFi’s bankruptcy restructuring plan. In early 2024, the company also settled with the estates of FTX and Alameda Research for nearly $1 billion, a move that brought it closer to full customer repayment.
Urgency and Verification
The firm is urging all customers who haven’t received their distributions to complete the Know Your Customer (KYC) identity verification process.
“We strongly encourage all customers who have not received their distributions or finished this process to complete this process by May 15, 2025,” the company said.
BlockFi clarified that the KYC requirement is not new. All customers had to comply with the identity checks when initially signing up. The current verification involves submitting two forms of identification and takes about ten minutes to complete. Once approved, payments are expected to be processed within 45 days.
Some users may still be unaware that the payment emails are legitimate, a factor the company believes is contributing to the low response rate. BlockFi stated it is working with security experts to bolster trust in its communication channels.
