Connect with us

Hi, what are you looking for?

Oracle of  Omaha Says – Investing and Stock NewsOracle of  Omaha Says – Investing and Stock News


BlockFi pauses client withdrawals – the details

Crypto news this week has had one major headline: FTX.

And under that could be numerous subplots – one of which is BlockFi, a crypto lender with ties to the collapsing crypto exchange FTX and which is also in the deep itself. What are the details?

Well, BlockFi has announced that it’s pausing customer withdrawals amid a scale down of other platform activities. According to the BlockFi team, the drastic and unfortunate move is a result of the catastrophe that’s just unfolded around FTX, FTX US and Alameda Research.

FTX contagion hits BlockFi

A statement the crypto lender shared early Friday said that events around the crumbling Sam Bankman-Fried ‘Empire’ mean BlockFi cannot “operate business as usual.” Pointing to the timeline of events, the BlockFi tweeted:

“We are shocked and dismayed by the news regarding FTX and Alameda. We, like the rest of the world, found out about this situation through Twitter.”

BlockFi, as highlighted, agreed to a $400 revolving credit facility from FTX in July 2022. The definitive agreement that was subject to BlockFi shareholders’ approval also included an option to have FTX US acquire the lender at a value of upto $240 million. The signs were there even then, and it happened as crypto winter and the cataclysm that was Luna and Three Arrows Capital sucked in Celsius, Voyager Digital and other crypto lenders.

On what has transpired since, BlockFi said in their tweeted statement:

“Until there is further clarity, we are limiting platform activity, including pausing client withdrawals as allowed under our Terms. We will share more specifics as soon as possible. We request that clients not deposit to BlockFi Wallet or Interest Accounts at this time.”

The crypto community expects the contagion from FTX to hit hard and many analysts and industry experts say investors would be safer if they took their money off many of these centralised exchanges.

Bitcoin and crypto investor Lark Davis tweeted after the BlockFi news surfaced:

As feared the #FTX contagion has spread.

Blockfi which had been in a bailout deal with FTX is now suspending withdrawals… #bitcoin #crypto

— Lark Davis (@TheCryptoLark) November 11, 2022

Will Clemente, the co-founder of Reflexivity Research, thinks this should be the case until the dust settles.

Blockfi is now pausing customer withdrawals.

Can’t stress enough, get your coins off centralized exchanges/custodians immediately. Transfer now and wait for the dust to settle, can always send back later.

— Will Clemente (@WClementeIII) November 11, 2022

The post BlockFi pauses client withdrawals – the details appeared first on Invezz.

Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like

    Editor's Pick

    Tele2 AB today announces a new partnership with security experts EBS to deliver a secure and managed IoT connectivity solution. Tele2 will support EBS...


    Anyone who has filled up the tank of their car this year will be aware of the rollercoaster ride that the price of oil...

    Latest News

    Sen. Patrick Leahy “was not feeling well” on Thursday and was admitted to the hospital overnight for observation, his office said in a statement....

    Latest News

    Joe Manchin is forcing Democrats into a brutal choice: Take a deal now to lower the costs of health care premiums and prescription drugs,...

    Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2023