BlockFi Limits User Activities Due to Uncertain FTX Situation

• BlockFi declared halting of withdrawals “as per their terms”.
• FTX’s acquisition invites to Binance have also reached a dead-end.

BlockFi, one of the leading crypto lending firms has declared withdrawal halting “as per their terms”. The clients are furthermore restricted from depositing in BlockFi wallets and interest accounts.

FTX’s financial struggle is snowballing along with its international counterparts. The bad effect of the FTX situation can be witnessed in the associated partner’s recent announcements. Additionally, the withdrawal of Binance from the acquisition has worsened the condition.

FTX Shadow on BlockFi

When the crypto market was falling apart in the month of May 2022, Sam Bankman-Fried, CEO of crypto exchange FTX started funding a number of agencies. BlockFi is one among them, in June 2022 the crypto financial service company received a line of credit worth $250 million. 

The past two weeks have turned out to be burdensome for the FTX.com and Alameda research. And earlier at the start of the day, Sam made a confession tweet regarding his and the firm’s failure. He also mentioned the steps in the future plan to bring the situation under control via LOI, term sheets, and much more.

Sam Bankman tweeted:

“Because at the end of the day, I was CEO, which means that *I* was responsible for making sure that things went well.  *I*, ultimately, should have been on top of everything. I clearly failed in that.  I’m sorry.”

Coming back to BlockFi, the crypto lenders are also in the dark with little updates acquired only through the social platforms. And as an end note made a disclaimer regarding the frequency of updates from their side.