Home Crypto Blockfi Pauses Customers Withdrawals, Cites ‘Lack of Clarity’ on FTX’s Status as Cause – News Bitcoin News

Blockfi Pauses Customers Withdrawals, Cites ‘Lack of Clarity’ on FTX’s Status as Cause – News Bitcoin News

by CryptoFan
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Blockfi, a cryptocurrency lending platform, has announced that it will limit its platform operations and suspend customer withdrawals. The company issued a letter saying the decision was due to a “lack of clarity” regarding the current state of FTX, which previously announced a $250 million investment in the platform to bolster its balance sheet. did.

Block Fee will limit platform activity and suspend customer withdrawals

Blockfi, one of the leading cryptocurrency lending platforms, will limit activity on its platform and suspend customer withdrawals at 8:16pm ET on November 10th as a result of the liquidity crisis. announced. FTX I’ve been through it. The company cited a “lack of clarity” on the status of the exchange as the main reason behind the resolution.

and publicationthe company took to Twitter to learn about the situation with FTX, explaining that it was “shocked and disappointed” by the development of the matter. was restricted.

The company previously notification The transaction, scheduled for November 11th, was scheduled to be postponed to November 14th as banking partner Silvergate Bank is celebrating Federal Veterans Day.

Finally, Blockfi said it will keep customers informed of upcoming developments. The news follows a statement from Blockfi co-founder Flori Marquez. “All Blockfi products are fully functional,” says Marquez murmured November 8, 2022.Blockfi is an independent business entity. We have a $400 million line of credit from [FTX US] (not FTX.com) will remain an independent entity until at least July 2023,” Marquez said. Added.

Trading FTX

the company had Safe We have a $250 million line of credit with FTX in June that will be used to strengthen our balance sheet. Commenting on the fate of these funds, Blockfi co-founder Zak Prince said:

Proceeds from the line of credit are contractually intended to be subordinated to all customer balances across all account types (BIA, BPY, loan collateral) and will be used as required.

The agreement signed between the two companies gave FTX the following options: acquisition Blockfi is priced up to $240 million.company that also had dismissed As a result of the crypto winter, 20% of employees were exposed to the Three Arrows Capital collapse in June, losing $80 million.

What do you think about Blockfi’s suspension of customer withdrawals? Let us know in the comments section below.

Sergio Goshenko

Sergio is a cryptocurrency journalist based in Venezuela. He explains that he entered the cryptosphere in December 2017 when the price hike happened, and fell behind the game. Computers With an engineering background, living in Venezuela and being affected by the cryptocurrency boom on a societal level, he offers a different perspective. About the success of crypto and how it can help the unbanked and underserved people.

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