FTX collapse prompts BlockFi to suspend withdrawals
A leading crypto lending firm, BlockFi, has enforced the suspension of withdrawals for its clients. The firm has taken the step after the sudden collapse of FTX that affected the entire market.
Regarding this issue, the firm has put out a statement on Twitter to give clarity to its customers. It has announced that "we aren't able to operate business as usual".
The cryptocurrency lender has cited a need for more clarity by FTX.com, FTX US, and Alameda on this issue. It has further notified that it has to pause withdrawals until these platforms provide more clarity. Moreover, it has requested its clients not to deposit funds in its interest accounts and wallets.
Earlier statement of BlockFi’s founder and COO
Paradoxically, this statement came just a few days after the COO and founder of BlockFi gave assurances about its operationality. On 8 November, Flori Marquez posted a long thread to assure the clients that it was completely operational.
Marquez’s statement for the market downturn was that BlockFi could handle such situations. Moreover, he mentioned that the company runs independently and will remain the same till July 2023.
Furthermore, he maintained that the company has access to 400 million USD through a line of credit from FTXUS. He also assured customers that the business was processing all client withdrawals in accordance with the Terms of Service.
However, today's announcement has refuted all these assurances. Clients cannot withdraw funds from their BlockFi wallets for an unknown period.
What happened to Sam Bankman-Fried’s exchange?
Sam Bankman-Fried has recently lost over $14.6 billion, which has removed him from Bloomberg’s list of billionaires. The reason for this is his company’s potential insolvency. Meanwhile, there’s also no lack of certainty whether Changpeng Zhao, Binance’s CEO, will assist the firm or not.
Earlier, the FTT token also crashed, and Zhao announced to sell off all of its FTT holdings. Currently, both firms are in a clash, which could be one of the reasons the crypto market is tumbling.
Author: Wasay Ali
Wasay Ali is a versatile professional writer with global experience and a background in mechanical engineering and social science. He is adept at crafting news and informational content for the crypto space and has experience writing for other niches. He is a professional SEO content writer who has worked with several digital marketing agencies and clients in the US, UK, Pakistan, and Europe. He is a dedicated volunteer and enjoys reading, writing, poetry, and going to the gym. He is an INFJ-A personality type dedicated to positively impacting the world. Wasay has a passion for writing as it allows him to express his creativity, share his knowledge, and connect with people worldwide.
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