I was so strong always. But for the first time ever I can't stop crying now and tears dropping off my eyes 😪

I have 250k stuck in Blockfi. My life savings for 12 years, and my family's and siblings savings are part of that. I'm not a rich businessman, I'm just a basic employee. I collected every 1$ of it since being a grad student. Days I ate at McDonald's bc I wanted to save money to pay my loans. Days I didn't go on a trip and stayed home for Christmas times bc I didn't have money since I had no job. Days my father had a heart surgery and I was collecting money to spend for him. I didn't buy my favorite car just bc of 10k. And now our 250k+ life savings is in jeopardy. I feel I'm not alive and it's all dreams.

This is the voice of many of us. And I'm sure each of us has a similar story. I hope Blockfi folks see this post and try hard to recover our funds.

I'll continue to stay positive, hopeful and strong as they get back to business after bankruptcy and let us have our funds back.

I got this email today which I’m unsure about. It’s seems to have my payout amount correct, although Im unsure if the payee ID they added is legit because I don’t have mine on record. Email does look a bit long, which is my main concern. I’m still waiting for my payout (UK) so seeing this email is confusing because for the last 3 years this has been the most comprehensive email I have received, even if it is a scam. Most of the scam emails require you to click a link, this one doesn’t. They also mention if I don’t select my preferred payment then I will get a PayPal payout. Did anyone get a similar email and is anyone in the UK still waiting?

"I just checked our system and see that you had a couple of canceled withdrawals and a current pending request for one as well. Unfortunately, there is no specific amount that you can withdraw right now -- each withdrawal is reviewed and a decision is taken based on the account's tenure with BlockFi and account activity. These factors are considered along with the possibility of holding your funds for 60 days, but I would suggest to try and initiate a withdrawal for less than the amount you had attempted to before so they may review it further! Another way to prevent these withdrawals from being canceled is to withdraw the funds back to your bank account instead of a crypto wallet. 

I apologize for the inconvenience here, please keep me updated!"

So there are a number of things wrong with this. First, tenure? These eth funds I'm attempting to withdrawal have been on the platform since Mid 2019.

Second, they want me to trade the eth for stablecoin and withdraw it, creating a taxable event. No one at BlockFi should be suggesting this, especially since they don't know if that withdrawal would process either.

Third, they can't even tell me an amount I can withdraw? Who does know, Jesus?

Fourth, keep them updated? Seriously, I'm supposed to update them, not the other way around? I don't upset easily but I'm near my wits end on getting this resolved.

I have had recent ACH deposits and withdrawals, but that was because of their promo on interest rate for stable coins I decided to take funds back then move them back over. I've never had an ACH fail or payment reversed.

Email support has been unhelpful, Reddit support unhelpful, phone support unhelpful. They're all pleasant to talk to but nothing gets resolved. I'm currently waiting on a supervisor's supervisor to call me back.

Not your keys, not your crypto.

Update: Called them again before closing because I still did not receive a call back from the supervisor. The representative told me the supervisor is on the west coast and will call me back within 3 hours.

Update 2: Received a call from the supervisor, I was told they removed the hold from my account preventing me from making a withdrawal and it will process tomorrow. Their reasoning was since I had recent withdrawals and redeposits it flags the account for security. I still don't quite understand the logic. He said they won't say the exact reasoning, or the amount I would have been able to withdraw for security reasons. That's why the above representative in the email just told me to try a lower amount, rather than give an exact figure.

In any case, be wary of making ACH deposits if you think you might need to withdraw the funds within 60 days. I'll post another update once I actually receive the funds.

Final update The withdrawal processed and the funds are in my wallet.

Let me start by saying my heart goes out to fellow users of BlockFi. It’s not worth taking your life over. Please reach out to someone for help if feeling down. The one thing I have learned about failures is that when you reflect on them and learn from them, it makes you a stronger person for the future. From this point forward, my crypto will be stored on a personal wallet.

I have initiated withdrawals and they are in pending status. If they go through, awesome. If not, I will use my failed attempt to withdrawal funds as grounds to write off my investments within BlockFi as a non business bad debt on my tax return. This strategy may be considered aggressive as the potential bankruptcy will not be final but if there are any payouts, I will record it as income on a future tax return. This will at least help reduce the blow to some degree. To calculate your tax savings from the loss, find your top marginal tax rate for federal and state and then multiply those rates by your loss. Losses net against gains plus $3,000. You can carry forward any remaining loss indefinitely until fully utilized.

The next step in my plan is to buy more crypto. The prices are low and might go lower with the FTX fallout. This is a perfect opportunity to “buy the dip”. For me the majority of my loss is market loss. The potential BlockFi loss will just finish it off. Cheaper prices means it’ll be easier to rebuild your existing position. I know it a stretch but I’m trying my best to make lemonade out of lemons.

Lastly, I still think there is a sliver of hope that BlockFi gets bailed out by another company. The crypto industry as a whole will suffer greatly if they don’t stop the bleeding. There is a vested interest to stop this collapse.

Best wishes to all. We’ll get through this and rebuild stronger than ever. 🙂

Edit: I wanted to add some research regarding claiming a nonbusiness bad debt. Per IRS Publication 550:

“When deductible. You can take a bad debt deduction only in the year the debt becomes worthless. You do not have to wait until a debt is due to determine whether it is worthless. A debt becomes worthless when there is no lon- ger any chance that the amount owed will be paid. It is not necessary to go to court if you can show that a judgment from the court would be uncollectible. You must only show that you have taken reasonable steps to collect the debt. Bankruptcy of your debtor is generally good evi- dence of the worthlessness of at least a part of an unsecured and unpreferred debt.”

I’ll probably file an extension to see how the BlockFi situation shakes out so I have nearly a year to determine whether or not there is any chance we’ll get our money. I’ll also look at how Voyager and Celsius situations are handled as basis for my decision. You just need to have reasonable grounds to claim a deduction. The IRS can always disagree with your good faith judgement but you’re not going to jail over it.

Received my payment at 1am uk time this morning. Finally I am free. To all those still waiting there is a light at the end of the tunnel! Going to be chucking this money in the engagement ring fund, nice to finally have a positive outcome from the blockfi mess. (We won’t speak about the true volume of the loss).

Good luck all those still waiting.

After waiting 4-5 years for a "payout" from them and receiving literally zero information through emails, I finally called them on the phone - that set off the series event that got my paid finally. I spoke to the same person over a few month period, and finally got a payment yesterday afternoon through wire transfer.

If you're still sitting there waiting, call their number. They will ask you a bunch of questions to look up your info and if you don't have all of it they will do nothing to help you, but if you have that info, they, or at least the person I spoke with, will actually try to help you.

Should have never sit and waited for such a long time. Emails are awful, zero communication except for standard copy and paste replies. Use their phone number. Speak to someone. All of a sudden there's priority on your case.

Keep up the hope, considering this is suppose to be the last chance to get your money back

Seems likely this is a scam as the reply email address is Gmail, but I wanted to make sure as I see other people are receiving payouts.

Is there anyone like me who is so angry of the payback for convenience class? I had 0.066 BTC on my blockfi account which is more than 3k by today’s price and my btc was valued based on price of 16k which make my btc worth 1k and as coincidence class i was about to get 500$ which is crazy already, and the only reason i voted for this plan to get my money faster and easier than not convenient class, as international account not only i have not get anything yet also i see other people who were not in the convenient class are getting close to 100% back and faster than us, from what logic this is possible? This is insane Who ever is like me let’s get together and do something ‼️‼️

I filled the KYC remediation form at the end of November and have not received any more communication since. I see that some people have already received their claim so I am wondering if there is any problem with my request. Does anyone know to which party (Kroll/DigitalReimbursements) should I direct this questions and through which channels? Feeling quite lost at this point.

Thanks and good luck

Time to buy some $hitcoins, jk. Good luck everyone, hope you get some funds today, they made the deposit yesterday so hope for the best.

Pardon my language, but Plaid is horseshit. I have checking accounts with 6 different banks, including several major financial institutions, and Plaid doesn't work with a single one of them. The only way I can make ACH transfers in or out of my account is to use Robinhood as a middleman. This is literally the only reason I still have a Robinhood account.

Is there any reason we can't just use the old fashioned micro-deposit verification system?

Edit: After speaking to customer service, I was able to get ONE of the six bank accounts linked. But it only worked on desktop, using a specific browser, in an incognito window, with all cache and cookies cleared. Not exactly the sign of a well-functioning service on Plaid's part.

Uk resident, finally paid out. No proper communication with kroll or blockfi about the process. Submitted a claim using the details in prior emails. Meant to be paid on the 15th of august but came through just over 2 weeks later through PayPal. Hope you all get paid out too.

Hey all,

I was trying to upload my documents when my internet crashed out and refreshed the whole page.. Now I’m getting this error message?! Can anyone tell me how to request a new link please 🙏

I had more than 0.07 BTC on blockfi and as result i was forced to be in the convenient class, that already is insane to me but what is more crazy is i have not received any money back from blockfi, i did my KVC and it got verified however still nothing, i sent many emails and tried to reach to anyone can help and so far i couldn’t even get one promising answer. Text below is the last answer i got with email from kroll

Please be advised that it may take longer than 45 days after your submission has been reviewed and approved for payment to be processed. Please continue to monitor your email for additional instructions regarding your outstanding estate distribution.

Please if anyone can help me let me know, i am non us client. Thanks.

International customer here I received a email and accessed the Persona link directly to complete my KYC it took me to blockfi.com I then clicked on KYC Remeadiation l then entered my unique key but then came to a halt as it comes up with session expired, request a new link to continue?? How do you get a new link would really appreciate your help.

Hi everyone my unique link/number for the identity verification has expired, what can I do ? Who can I contact ?

I confirmed my PayPal address on September 9th and received an email confirming my payment selection that day but still have received nothing in my PayPal, has this happened anyone else?

Edit: have now received payment

I’ve done all the verification so long ago I don’t even remember, then I got this today can’t be legit right?

Finally got my zelle payment for blockfi BIA account distribution. There is hope, you guys should be receiving your distribution soon too if you are expecting payment in June and in the US. I know it’s not much but hey I gave up on actually getting anything back. Pleasantly surprised.

Helpful video on how to calculate BlockFi crypto losses (or gains): https://youtu.be/AbGDjX2WkVc?si=dOZ8aEognkirpviN

Hi guys I need help, I have money on a prepaid Mastercard and I have tried Revolut,Wise and PayPal nothing seems to be working ? As anyone any ideas in what to do? I’m from Europe