April 23, 2024

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BlockFi limits platform activity, including halting customer withdrawals

BlockFi limits platform activity, including halting customer withdrawals

Cryptocurrency lender BlockFi has halted customer withdrawals on its platform as part of a broader curb on the platform’s activity in the wake of the FTX crash.

The company said in a tweet on November 11 that a “lack of clarity on the status of FTX.com, FTX US and Alameda” prevented its ability to operate as usual.

As a result, platform activity is limited until there is more clarity on the evolving situation, she said.

The company also asked customers not to deposit to BlockFi wallets or interest accounts at this time.

It comes just days after a Twitter thread in which BlockFi founder and COO Flori Marquez on November 8 assured users that all BlockFi products are fully functional, given that they have a $400 million line of credit from FTX US, a separate entity from one affected by the liquidity crisis. .

Marquis’ comment that BlockFi “will remain an independent entity until at least July 2023” is a likely reference to the deal with FTX US that provided them with a line of credit, in which FTX US was provided with the option to acquire BlockFi at a variable rate of up to $240 million.

However, recent developments from FTX US, where a banner at the top of the FTX US website said “Trading in FTX US may be suspended Within a few days it “raised questions about the financial impact of the FTX fallout on its US arm.

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Related: FTX US resigns from Crypto Innovation Council

The crypto community hasn’t coped well with the sudden change in language from BlockFi, which happened just 12 hours ago Certain Customers that “all crypto transactions, including withdrawals, will continue as normal.”

Kevin Pavrath, CEO of HouseHack and YouTuber with 1.85 million subscribers noted a similar shift in Sam Bankman-Fried’s public comments in the run-up to the FTX fallout.