BlockFi is a leading crypto lending and borrowing platform that allows users to earn interest on their cryptocurrency holdings, take out loans using crypto as collateral, and trade various digital assets. While it offers attractive services, the highly volatile nature of the crypto market and evolving user needs might prompt some to consider leaving BlockFi.
The situation became critical when BlockFi filed for Chapter 11 bankruptcy protection in November 2022 amid the crypto market downturn. This bankruptcy filing could have significant implications for users’ funds and accounts. As a result, many users may want to withdraw their assets and close their BlockFi accounts to mitigate potential risks.
If you’re among those users considering leaving BlockFi, this comprehensive guide will walk you through the process of securely deleting your account while navigating the complexities of the bankruptcy proceedings. We’ll prioritize using the most up-to-date information from BlockFi’s official resources to ensure a smooth and compliant account closure.
Reasons for Deleting a BlockFi Account
There are numerous reasons why someone might want to delete their BlockFi account. Understanding these reasons can provide valuable insights into the user experience and potential areas for improvement. Here are some common reasons:
- No Longer Using the Platform: Some users may have stopped using BlockFi due to a change in their investment strategy or because they have found an alternative platform that better suits their needs.
- Privacy Concerns: In the digital age, privacy is a significant concern. Users may choose to delete their BlockFi account if they feel their personal information is not adequately protected.
- Security Concerns: Despite the robust security measures employed by BlockFi, some users may still have concerns about the safety of their digital assets and choose to delete their account.
- Dissatisfaction with Services: If a user is unhappy with the services provided by BlockFi, such as the interest rates, loan terms, or customer service, they may choose to delete their account.
- Legal or Regulatory Concerns: The regulatory landscape for cryptocurrencies is continually evolving. Some users may choose to delete their BlockFi account due to legal or regulatory concerns.
- Financial Hardship: Users facing financial hardship may choose to delete their BlockFi account to avoid the temptation of risky investments.
- Too Many Accounts: Some users may have accounts on multiple platforms and decide to consolidate their investments, leading to the deletion of their BlockFi account.
- Change in Investment Strategy: If a user decides to move away from cryptocurrency investments, they may choose to delete their BlockFi account.
- Cybersecurity Concerns: Despite the security measures in place, some users may still worry about the potential for hacks or data breaches and choose to delete their account.
- Negative Experiences with the Platform: Any negative experiences, such as technical issues or poor customer service, could lead a user to delete their BlockFi account.
Pre-Deletion Considerations
Before proceeding with deleting your BlockFi account, it’s crucial to ensure you’ve taken the necessary steps to prepare. Here’s what you need to do:
Check for Remaining Funds and Pending Interest:
- Log in to your BlockFi account and check your BlockFi Interest Account (BIA) balance.
- If you have any funds remaining, you’ll need to withdraw them before deletion.
- Important: If you have any pending interest payments, it’s recommended to wait until they are credited to your account before proceeding. Interest payments typically occur on the first business day of each month.
Withdraw Your Funds:
- Navigate to the “Withdraw” section on your BlockFi dashboard.
- Select the specific cryptocurrency you wish to withdraw.
- Enter the amount you want to transfer and provide the destination address of your external wallet (e.g., hardware wallet or reputable software wallet).
Important Notes on Withdrawals:
- BlockFi withdrawals can take up to 7 days to process, so factor this timeframe into your deletion plan.
- After initiating a withdrawal, there might be a security hold period before funds are released. This helps protect your account from unauthorized activity. The hold period duration depends on your account’s security settings.
Step-by-Step Guide to Deleting a BlockFi Account
Deleting your BlockFi account involves sending an email to BlockFi’s support team. Here’s a step-by-step guide on how to do this:
- Open Your Registered Email Account: Access the email account that you used to register with BlockFi.
- Compose an Email: Create a new email and address it to
onboarding@blockfi.com. - Set the Subject: Type “Request To Delete My BlockFi Account” in the subject line.
- Write the Email: In the body of the email, explain that you want to delete your account. Include your user ID, the email address associated with your account, and your reason for wanting to delete your account.
- Send the Email: After reviewing your email for accuracy, send it.
BlockFi’s support team will process your request and delete your account. Please note that once your account is deleted, it cannot be recovered.
Submit your email and expect a response within 36 to 48 hours. Upon successful closure, you’ll receive an email confirmation from their helpdesk. Once confirmed, proceed to remove any remaining traces of the service.
Read Also: How to Delete Your Squirt Account: A Step-by-Step Guide
Cleaning Your Coins
When you’re removing your bitcoin from BlockFi, the Unspent Transaction Output (UTXO) they generate on your behalf is subject to certain restrictions. Specifically, you cannot send these coins to:
- A “Mixing” Service: Services like JoinMarket couple different transactions together in an attempt to obfuscate the source of funds. However, BlockFi-generated UTXOs cannot be sent directly to these services.
- Peer-to-Peer and Other Exchanges Without KYC: Exchanges that do not perform Know Your Customer (KYC) screening as part of their onboarding process cannot receive BlockFi-generated UTXOs.
So, what can you do if you want to break the ties between your identification, BlockFi, and the UTXO generated? Here’s a recommended process:
- Generate a New Public Address: Create a new public address where you can send your coins.
- Remove Your Coins: Transfer your coins from BlockFi to the new public address.
- Use a Mixing Service: After the coins are in your new address, you can proceed to use a mixing service to further obfuscate the ties.
Please note that while this process can help increase privacy, it should be done in compliance with all applicable laws and regulations. Always do your own research and consult with a legal advisor if you have any concerns.
Conclusion
Deleting your BlockFi account is a decision that should not be taken lightly. It involves ensuring that all funds have been withdrawn, understanding the implications of account deletion, and following the correct steps to request account deletion.
In this article, we’ve provided a comprehensive guide on how to delete your BlockFi account. We’ve discussed the reasons why you might want to delete your account, the necessary preparations before account deletion, and a step-by-step guide on how to delete your account. We’ve also provided a detailed template for composing an account deletion email.
Remember, once your account is deleted, it cannot be recovered. Therefore, it’s crucial to ensure that this is the right decision for you. If you have any questions or need further assistance, don’t hesitate to reach out to BlockFi’s support team.
We hope this guide has been helpful to you. As always, make sure to do your own research and consult with a financial advisor before making any major financial decisions.
Scarlett Foster founded HowToCancelNow.com to share easy guides for canceling online subscriptions and accounts. An avid internet user, Scarlett became an expert in service cancellation processes. The site simplifies cancellations so users can ditch unnecessary subscriptions with just a few clicks.