Less than half of BlockFi’s non-U.S. customers have stepped forward to reclaim their assets as the May 15 deadline approaches, according to a blog update from the company.
The cryptocurrency lending platform declared bankruptcy in November 2022 due to fallout from the FTX collapse that rippled through the crypto sector. It later emerged from bankruptcy and unveiled a plan in July 2024 to distribute the full dollar value of customers’ claims as they were at the time of the bankruptcy filing.
Currently, 97% of U.S. customers have successfully claimed their distributions, while only 43% of non-U.S. customers have done the same. Notably, the distribution process for U.S. customers was more straightforward and started sooner than for their non-U.S. counterparts, which requires cooperation between courts in the U.S. and Bermuda.
One potential factor contributing to the low number of claims could be that recipients perceive communications from the BlockFi Estate—specifically, requests for customers to choose a payment method—as spam or phishing attempts. The company affirmed that it has been collaborating with security professionals to help validate the authenticity of these messages.
The blog post conveyed, “BlockFi is making every effort to ensure final distributions reach all former customers. Some individuals may need to complete a ‘Know Your Customer’ (KYC) verification process to receive their funds. We strongly advise all customers who have not yet received their distributions or completed this process to do so by May 15, 2025.”
Importantly, both U.S. and non-U.S. customers were required to undergo KYC procedures when initially using BlockFi, so this should not pose a significant hurdle for those yet to claim.
The verification process necessitates two forms of ID, and BlockFi mentioned that it can be completed in approximately ten minutes. After submission, if approved, customers can expect processed payments within 45 days.
According to bankruptcy regulations, any assets that customers do not claim by the May 15 deadline will be redistributed among other unsecured creditors in a lower priority tier.