Crypto lender BlockFi couldn’t catch a break since Celsius and 3AC collapsed, as now it pauses client withdrawals and limited platform activity following the crash of the crypto exchange FTX.
“We are shocked and dismayed by the news regarding FTX and Alameda. Given the lack of clarity on the status of FTX.com, FTX US, and Alameda, we are not able to operate business as usual,” BlockFi stated in its announcement.
In June, following the 3AC and Celsius crash, BlockFi secured a $250M credit line crypto FTX after signing a term sheet. In July, FTX US announced it will acquire BlockFi in a $240M deal and even offered a $400M rolling credit facility to BlockFi.
When reports of FTX collapse started spreading around, BlockFi co-founder Flori Marquez tweeted “All @BlockFi products are fully operational,” after users started raising concerns about their partnership.
Marques noted BlockFi is an independent business entity and they have a $400M line of credit from FTX.US and not FTX International. BlockFi will remain an independent entity until at least July 2023, she stated.
The BlockFi co-founder did add that the team will remain committed to transparency and serving its clients, but that doesn’t seem to be the case with them halting withdrawals abruptly.
Also Read: Crypto.com Pauses Solana USDC and USDT Withdrawals
Although the company will send updates on the situation, they will arrive less often than what their clients and other stakeholders are used to.
Additionally, it urged users not to add funds to their wallets or Interest Accounts, but it did not state that deposits would be halted.
