FTX fallout continues: BlockFi reportedly mulling bankruptcy, SALT pauses withdrawals and deposits
In an official replace despatched to purchasers on Nov. 14, BlockFi admitted to having “important publicity” to FTX and its affiliated firms however insisted it had “the required liquidity to discover all choices.” The information got here as considerably of a shock since on Nov. 8, BlockFi’s founder and chief working officer, Flori Marquez, assured customers in a Twitter thread that every one BlockFi merchandise had been “totally operational” as a result of it had a $400 million line of credit score from FTX US, which is a separate entity from FTX, the worldwide entity affected by the liquidity crunch.
Associated: FTX owned crypto change Liquid halts all withdrawals
Within the upcoming weeks, it might come as no shock to study that many extra firms have been affected by FTX’s collapse. On Nov 15, Crypto lending platform SALT additionally disclosed that it could pause withdrawals and deposits to its platform “efficient instantly” as a result of “the collapse of FTX has impacted our enterprise”, in keeping with an e mail despatched to its purchasers.
In an e mail captured in a tweet circulating on-line, the corporate shared, “Till we’re capable of decide the extent of this influence with particular particulars that we really feel assured are factually correct, we have now paused deposits and withdrawals on the Salt platform instantly.”
Shawn Owen, the CEO of SALT, denied allegations that this can be a sign his firm was “going bust.” Nonetheless, he acknowledged, “We didn’t publish this as a discover of going bust. We’re pausing to take care of the autumn out of FTX and to verify that non[e] of our counter events have any further dangers in order that we are able to proceed with most warning with all efforts directed at not going bust. Extra data quickly.”
We didn’t publish this as a discover of going bust. We’re pausing to take care of the autumn out of FTX and to verify that non of our counter events have any further dangers in order that we are able to proceed with most warning with all efforts directed at not going bust. Extra data quickly.
— Shawn Owen (@Shawn_OwenJ) November 15, 2022
On Nov. 15, Cointelegraph reported that the Japanese cryptocurrency change Liquid halted withdrawals amid the continued disaster amid centralized crypto exchanges. The FTX-owned crypto change Liquid took to Twitter to formally announce a suspension of fiat and crypto withdrawals on its Liquid International platform.
Solely a day after denying that almost all of its belongings had been held on FTX earlier than the change’s collapse, BlockFi is allegedly getting ready to file for chapter, in keeping with a supply acquainted with the matter, as reported by the WSJ.
Fiat and crypto withdrawals have been suspended on Liquid International in compliance with the necessities of voluntary Chapter 11 proceedings in the US.
Till additional discover we might recommend to not deposit both FIAT or Crypto
We’ll present updates when obtainable.
— Liquid International Official (@Liquid_Global) November 15, 2022
Cointelegraph reached out to BlockFi and SALT for remark however didn’t obtain a response in time for publication.
