Blockfi Restricts Platform Activity Including Stopping Customer Withdrawals

The company said in a Nov. 11 tweet that a “lack of clarity regarding the status of FTX.com, FTX US and Alameda” prevented it from operating normally. As a result, it has limited platform activity until there is further clarity on the developing situation, he said. The company also asked customers not to deposit into BlockFi wallets or interest accounts at this time. pic.twitter.com/zNF1uP6evl — BlockFi (@BlockFi) November 11, 2022 It comes just days after a Twitter thread in which BlockFi founder and COO Flori Marquez on Nov. 8 assured users that all BlockFi products were fully functional as they have a $400 million credit line from FTX US, which is separate entity from the one affected by a liquidity crisis. 2) @BlockFi is an independent business entity. We have a $400MM line of credit from (not and will remain an independent entity through at least July 2023. — Flori Marquez (@FounderFlori) November 8, 2022 Marquez’s comment that BlockFi “will remain an independent entity until at least July 2023” is likely a reference to the agreement with FTX US that provided them with the line of credit, in which FTX US had the option to acquire BlockFi for a variable price up to $240 million. However, recent developments from FTX US, in which a banner at the top of the FTX US website stated that “trading may cease on FTX US in a few days” have raised questions about the financial impact that FTX’s impact has had on USA. arm. The abrupt change in language that came from BlockFi, which just 12 hours earlier had assured customers that “all crypto transactions, including withdrawals, would continue as normal” was not well received by the cryptocurrency community. Kevin Paffrath, CEO of HouseHack and a YouTuber with 1.85 million subscribers, pointed out a similar twist in Sam Bankman-Fried’s public comments in the run-up to the FTX debacle. Blockfi 11 hours ago: downloads “will remain fully functional” Blockfi 20 minutes ago: downloads stopped, can no longer do business. This is why trusting institutions is hard… Sam Bankman-Fried says “everything is fine”, now bankrupt. https://t.co/q8GRAhXFgA — Meet Kevin (@realMeetKevin) November 11, 2022

title: “Blockfi Restricts Platform Activity Including Stopping Customer Withdrawals " ShowToc: true date: “2022-11-21” author: “Patricia Brannan”

The company said in a Nov. 11 tweet that a “lack of clarity regarding the status of FTX.com, FTX US and Alameda” prevented it from operating normally. As a result, it has limited platform activity until there is further clarity on the developing situation, he said. The company also asked customers not to deposit into BlockFi wallets or interest accounts at this time. pic.twitter.com/zNF1uP6evl — BlockFi (@BlockFi) November 11, 2022 It comes just days after a Twitter thread in which BlockFi founder and COO Flori Marquez on Nov. 8 assured users that all BlockFi products were fully functional as they have a $400 million credit line from FTX US, which is separate entity from the one affected by a liquidity crisis. 2) @BlockFi is an independent business entity. We have a $400MM line of credit from (not and will remain an independent entity through at least July 2023. — Flori Marquez (@FounderFlori) November 8, 2022 Marquez’s comment that BlockFi “will remain an independent entity until at least July 2023” is likely a reference to the agreement with FTX US that provided them with the line of credit, in which FTX US had the option to acquire BlockFi for a variable price up to $240 million. However, recent developments from FTX US, in which a banner at the top of the FTX US website stated that “trading may cease on FTX US in a few days” have raised questions about the financial impact that FTX’s impact has had on USA. arm. The abrupt change in language that came from BlockFi, which just 12 hours earlier had assured customers that “all crypto transactions, including withdrawals, would continue as normal” was not well received by the cryptocurrency community. Kevin Paffrath, CEO of HouseHack and a YouTuber with 1.85 million subscribers, pointed out a similar twist in Sam Bankman-Fried’s public comments in the run-up to the FTX debacle. Blockfi 11 hours ago: downloads “will remain fully functional” Blockfi 20 minutes ago: downloads stopped, can no longer do business. This is why trusting institutions is hard… Sam Bankman-Fried says “everything is fine”, now bankrupt. https://t.co/q8GRAhXFgA — Meet Kevin (@realMeetKevin) November 11, 2022