Crypto Lender BlockFi Suspends Withdrawals Following FTX Collapse

© Reuters. – Cryptocurrency lender BlockFi said it could not conduct business normally and would limit its business following the collapse of FTX.

The company said the “lack of clarity” around FTX’s current situation meant it would pause client withdrawals. She also asked her clients not to make deposits to her wallet or interest accounts.

“We will share more details as soon as possible. We intend to communicate as frequently as possible, but we anticipate that it will be less frequent than what our customers and other shareholders are accustomed to.”

Founder and COO Flori Marquez explained that “all BlockFi products are fully operational,” noting that it is an independent entity.

BlockFi and FTX US announced an agreement last July that FTX US would provide BlockFi with $400 million in credit, giving it the right to acquire BlockFi. The price of the acquisition would depend on BlockFi being granted SEC approval to operate a yield-generating service in the United States, reaching at least $10 billion in client assets by the time FTX US exercises his option and BlockFi’s annual income.

FTX is now under state and federal investigations and has halted withdrawals. Although FTX US is doing well, according to FTX founder Sam Bankman-Fried, the company announced on Thursday that it may halt trading in the coming days and advised its users to stop deposits.

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