New collateral damage from the FTX case. The BlockFi platform issued a statement on Twitter announcing, “we are unable to operate as usual. Some features, including customer fund withdrawals, are currently suspended.
BlockFi affected by FTX
“It’s when the sea recedes that you see those who bathe naked.” This saying by Warren Buffet makes sense once again. After Genesis Trading revealed that it had $175 million frozen on FTX, BlockFi announced that it was also affected by the setbacks of Sam Bankman-Fried’s exchange.
In a late night statement, BlockFi announced: “Due to the lack of clarity on the status of FTX.US and FTX.com, we are unable to operate as usual. Here is the full announcement made by the trading company:
– BlockFi (@BlockFi) November 11, 2022
Apart from saying that BlockFi is “shocked and dismayed” by the news currently affecting FTX and Alameda, it informs its users that their priority “has been and will continue to be the protection of customers and their interests”.
BlockFi suspends customer withdrawals
However, “pending further clarification”, the platform has announced the suspension of certain features, including customer withdrawals. This is a measure that would be perfectly authorized according to BlockFi’s terms and conditions, as the press release reminds us.
Some Internet users, notably the very well-followed ZachXBT, were quick to point out contradictory announcements dating from just two days ago. They came from BlockFi’s founder and COO, Flori Marquez, who claimed that “all BlockFi products were fully operational”.
Oof pic.twitter.com/TFcr9W3LZL
– ZachXBT (@zachxbt) November 11, 2022
It justified this by explaining that it had “a $400 million line of credit from FTX.US, which is a separate entity from the one affected by a cash shortage. Since then, some US users have received a message alerting them that FTX.US may soon suspend its operations as well.
