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BlockFi Stops Withdrawals due to FTX Collapse

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Popular lending company restricts access to funds.
Key TakeawaysBlockFi announced that it will stop withdrawals due to uncertainty about FTX’s financial standing.
The company stated that it would post updates about the situation, but that they will be infrequent.
In recent days, FTX and its international counterparts have also restricted user access to funds.
Share this article. BlockFi, a crypto lending service, has stated that it will stop client withdrawals and restrict platform activity. It asked users to not deposit funds into their wallets or interest accounts, but did not specify that deposits would be stopped. “We, along with the rest of the globe, discovered this situation via Twitter.” Over the past few days, a significant portion of Alameda Research’s holdings was revealed to be tied more to FTX’s FTT token than traditional assets. This controversy led to a bank ran on FTX. This controversy led to a bank run on FTX. It wrote that “Given the indeterminate status of FTX.com, FTX US and Alameda [Research],” it was unable to continue to operate as usual. The company did not specify whether it had financial exposure for FTX or related companies. Flori Marquez, BlockFi’s COO and cofounder, stated earlier this week that the company had a loan of $400 million from FTX US. It is unclear whether BlockFi had other exposure.Incidentally, the competing crypto lending firm Nexo said on Tuesday that it had narrowly avoided losses from FTX’s collapse. Nexo withdrew some balances shortly before FTX’s collapse, but is still operating as normal. FTX and its international counterparts are also limiting activities and preventing withdrawals. This is due to regulatory issues as well as apparent financial shortages.Disclosure: At the time of writing, the author of this piece owned BTC, ETH, and other digital assets.Share this articleThe information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. does not act as an investment advisor. We do not provide personalized investment advice or any other financial advice. This website’s information is subject to change at any time. The information on this website could become obsolete or incorrect. You may not be able to update any information that is outdated, incomplete or inaccurate. We also reserve the right to change any information that is incorrect, incomplete or outdated. If you need investment advice about an ICO, IEO or other investment, we strongly recommend that you consult a licensed financial advisor or other qualified financial professional. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.See full terms and conditions.Recommended News

 

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