BlockFi Review 2025 – What Happened to the Crypto Lending Giant?

BlockFi is No Longer in Business – Here’s Why You Should Stay Away

You’ve probably seen the name BlockFi floating around the crypto space at some point. Once hailed as one of the most trusted crypto lending platforms, it promised users the ability to earn interest on their crypto, borrow against their assets, and enjoy seamless financial tools for digital assets. But in 2025, we’re not reviewing a live platform—we’re reviewing the collapse of a once-prominent company.

This review isn’t about signup bonuses or yield rates. It’s about how BlockFi filed for bankruptcy, shut down its services, and left thousands of users scrambling to recover what they could.

A Brief History of BlockFi’s Rise and Fall

Founded in 2017, BlockFi grew quickly during the DeFi boom by offering products that rivaled traditional finance—except with crypto. Users could:

• Earn high interest on Bitcoin, Ethereum, and stablecoins
• Borrow USD against their crypto without selling it
• Use a crypto credit card with rewards paid in Bitcoin

Sounds great, right? It was... until it wasn’t.

November 2022: Bankruptcy Hits Hard

In November 2022, BlockFi officially filed for Chapter 11 bankruptcy in the U.S., citing exposure to the collapsed exchange FTX and general market turmoil. Users immediately lost access to funds, and the platform suspended withdrawals.

This wasn't just a pause. It was the beginning of the end.

May 2024: Platform Shuts Down Completely

Fast forward to May 2024—the BlockFi web platform is officially shut down. Customers can no longer log in, check balances, or even review historical activity.

The California Department of Financial Protection and Innovation then revoked BlockFi’s lending license in November 2024, effectively sealing the coffin on what was left of the company’s U.S. operations.

Where Things Stand in 2025

As of today, BlockFi is no longer an operational business. If you still had funds there, here’s the harsh truth:

• You’re not getting everything back
• There’s no support team to contact
• The only thing left is the bankruptcy claims process

And even that has limitations.

Convenience Class Distributions

Distributions for those in the Convenience Class began in February 2024 and are ongoing. Here’s how it works:

• You must have opted in or qualified based on your balance
• You’ll receive up to 50% of your allowed claim
• The maximum payout is $1,500
• Funds are distributed in USD or CAD, depending on your country

If you had more than that on the platform? You’re out of luck for now, and the remainder depends on ongoing bankruptcy proceedings.

Why This Matters to Crypto Investors

If you're reading this in 2025, there’s a huge lesson here: Not your keys, not your coins.

BlockFi's model required users to hand over control of their crypto in exchange for yields that were too good to be true in the long run. And when the markets turned sour, those centralized risk models couldn't survive.

Need a better alternative? We’ve reviewed several active platforms where you can lend and borrow crypto with higher transparency. Visit our full list here:

 Best Crypto Lending Platforms

BlockFi’s Biggest Red Flags (In Hindsight)

Hindsight is 20/20, but let’s point out the signs:

1. Overexposure to FTX and Celsius: BlockFi had significant financial entanglements with companies that also went under.
2. No Federal Insurance: BlockFi accounts were never insured.
3. Centralized Control Over User Funds: BlockFi controlled your crypto keys.
4. Regulatory Pressure Was Mounting: Regulators were already scrutinizing operations before the shutdown.
5. Communication Breakdown: Users complained of poor communication and limited updates post-bankruptcy.

Can You Still Access BlockFi?

No. As of mid-2025:

• The website is offline
• Support emails go unanswered
• App access is disabled
• The company is legally inactive

You may still receive communications from the bankruptcy trustee, especially if you're in the Convenience Class, but don’t expect live chat support or platform updates.

Final Verdict – BlockFi Is Done. Don’t Waste Time

BlockFi is not coming back. It’s not rebranding, relaunching, or magically re-opening. If you’re looking for a crypto interest account or loan today, this is not the platform you should be considering.

Instead, focus on active, transparent, and regulated platforms. And always remember—self-custody first.

We’ll continue monitoring updates from the BlockFi bankruptcy process, but for now, consider your BlockFi chapter closed. You can find better options in our crypto lending hub.

Frequently Asked Questions (FAQs)

Is BlockFi still in business in 2025?

No. BlockFi shut down its platform in May 2024. It has not resumed operations.

Can I access my BlockFi account or app?

No. All user access has been removed. The platform is offline.

What’s the Convenience Class payout?

Eligible users receive 50% of allowed claims, capped at $1,500, paid in USD or CAD.

Will BlockFi reopen?

Highly unlikely. BlockFi has no license to operate and remains in bankruptcy.

Where can I lend crypto now?

Check out our reviewed list of active and trusted platforms here:

 Crypto Lending Platforms Reviewed by 2CryptoGuys