BlockFi denies rumors that majority of its assets were held on FTX
Crypto lender BlockFi issued an official discover to its shoppers on Nov. 14 denying rumors that almost all of its belongings have been on FTX previous to the alternate’s collapse. In keeping with an replace shared by BlockFi, though a majority of its belongings weren’t on FTX, it nonetheless has “vital publicity to FTX and related company entities that encompasses obligations owed to us by Alameda, belongings held at FTX.com, and undrawn quantities from our credit score line with FTX US.”
Regardless of its publicity, BlockFi assured shoppers that it has “the required liquidity to discover all choices” and is presently consulting with consultants and advisers on find out how to navigate its subsequent steps.
In keeping with the crypto lender, it’s nonetheless engaged on “recovering all obligations owed to BlockFi” however expects that the method might take some time, as FTX is presently working by way of its chapter course of.
With regard to its bank card product, BlockFi shared that it’ll present direct particulars “as and when acceptable.” In the meantime, the platform mentioned it plans to proceed its pause on many actions after figuring out that it couldn’t function enterprise as normal within the present market local weather.
BlockFi additionally cautioned its shoppers to keep away from making any deposits to their BlockFi wallets or curiosity accounts.
Associated: Former Huobi-linked entity says it has $18.1 million caught on FTX
On Nov. 11, Cointelegraph reported that BlockFi had halted shopper withdrawals on its platform as a part of a broader restrict on platform exercise within the wake of FTX’s collapse. The corporate shared in a Nov. 11 tweet {that a} “lack of readability on the standing of FTX.com, FTX US, and Alameda” had prevented it from working usually.
BlockFi’s newest replace comes solely days after BlockFi’s founder and chief working officer, Flori Marquez, assured customers in a Twitter thread that every one BlockFi merchandise have been absolutely operational, because it had a $400 million line of credit score from FTX US, which is a separate entity from the worldwide entity affected by the liquidity crunch.
1) All @BlockFi merchandise are absolutely operational.
— Flori Marquez (@FounderFlori) November 8, 2022
