Crypto lender BlockFi has halted client withdrawals on its platform as part of a wider range of platform actions in the wake of FTX’s collapse.
The company said in a Nov. 11 tweet that “uncertainty regarding the status of FTX.com, FTX US and Alameda” prevented it from operating normally.
As a result, it said it has limited platform activity until it gets more clarity on the developing situation.
The company also asks customers not to make deposits into BlockFi wallets or interest accounts at this time.
— BlockFi (@BlockFi) November 11, 2022
This comes days after a November 8 Twitter thread in which BlockFi founder and COO Flori Marquez assured users that BlockFi products will be fully functional because they received a $400 million loan from FTX US. One affected by liquidity crunch.
— Flori Marquez (@FounderFlori) November 8, 2022
Marquez’s comment that BlockFi will “remain an independent company until at least July 2023” may be a reference to the agreement with FTX US that gave them a line of credit, in which FTX US was given the option to purchase BlockFi at a variable price. Up to $240 million.
However, FTX US’s latest developments, including a banner at the top of the FTX US website saying “Trading on FTX US may be suspended “In a few days” has raised questions about the financial impact of FTX’s fall on its US side.
The crypto community didn’t take well to the sudden change in language coming out of Blockchain 12 hours ago. was assured Customers will “continue as usual with all crypto transactions, including withdrawals.”
Kevin Baffrath, CEO of HouseHack and a YouTuber with 1.85 million subscribers, pointed to a similar turn in Sam Bankman-Fried’s public comments before the FTX crash.
Blockfi 11 hours ago: Withdrawal “fully functional”
Blockfi 20 minutes ago: suspends withdrawals, no longer able to trade.
This is why it’s hard to trust companies… Sam Bankman-Fried says, “Everything’s fine,” now going bankrupt. https://t.co/q8GRAhXFgA
— Meet Kevin (@realMeetKevin) November 11, 2022
“Lifelong social media lover. Falls down a lot. Creator. Devoted food aficionado. Explorer. Typical troublemaker.”