BlockFi Halts Withdrawals Due to FTX Collapse
Crypto lender BlockFi said it could not conduct business as normal and would be limiting activity due to FTX’s collapse.
The company said in a tweet that the “lack of clarity” around FTX’s current situation meant it would pause client withdrawals. It also told clients not to deposit to its wallet or interest accounts.
— BlockFi (@BlockFi) November 11, 2022
“We will share more specifics as soon as possible,” the company said. “… we intend to communicate as frequently as possible but anticipate that this will be less frequent than what our clients and other shareholders are used to.”
BlockFi was once worth $3 billion.
The news comes only days after a Nov 8. tweet in which BlockFi founder and COO Flori Marquez claimed that all BlockFi products were fully operational, as they have a $400 million line of credit from FTX US, which is a separate entity from the one affected by a liquidity crunch. FTX is the subject of state and federal investigations and has halted withdrawals.
2) @BlockFi is an independent business entity. We have a $400MM line of credit from https://t.co/rFQz2hySwu (not https://t.co/oVC3gZQ6lb) and will remain an independent entity until at least July 2023.
— Flori Marquez (@FounderFlori) November 8, 2022
