BlockFi announced that it would be ”limiting platform activity” following the uncertainty posed by the situation with embattled crypto exchange FTX.
The crypto firm’s move includes ”pausing client withdrawals,” following FTX’s action of effectively halting withdrawals—as the firm faces liquidity problems against high level of redemptions – and in the time since BlockFi’s announcement, has filed for Chapter 11 bankruptcy.
The platform aslo noted that ”given the lack of clarity on the status of FTX.com, FTX US, and Alameda [Research], [they] are not able to operate business as usual.”
This is a complete turnaround from the statements tweeted just two days before by BlockFi Founder and COO Flori Marquez, underlining then that ”all BlockFi products are fully operational.”
“We are processing all client withdrawals in line with our terms of service. To date, BlockFi has aimed to deliver all client withdrawals faster than our Terms of Service,” Marquez added.n
Back in June, FTX got close to acquiring BlockFi at a 99% discount—FTX is reportedly to pay just $25 million for BlockFi, which last summer held a valuation of $4.8 billion.
Information for this briefing was found via the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.