BlockFi suspends withdrawals, retains bankruptcy counsel…who’s next?

(Kitco News) – Crypto lender BlockFi announced Thursday evening that they have been forced to halt withdrawals on the platform amidst the chaos of the FTX collapse.

“We are shocked and dismayed by the news regarding FTX and Alameda,” they wrote in a Twitter post. “Given the lack of clarity on the status of, FTX US and Alameda, we are not able to operate business as usual.”

BlockFi appeared to throw shade at FTX, saying, “We, like the rest of the world, found out about this situation through Twitter.” This is surprising considering FTX had recently played the role of their savior, extending the embattled lender a $400 million credit facility in July to help stave off the bankruptcy faced by rivals Celsius and Voyager.

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In the end, this rescue may have further weakened FTX, plunging both firms into crisis just months later. The terms of the relationship between the two firms is likely to be picked apart by investigators, as there are claims that virtually all of BlockFi’s client deposits were custodied on FTX.


h/t Goneviral


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