Nov 10, 2022 - Economy

BlockFi halts withdrawals amid FTX turmoil

Illustration of a blinking pause button

Illustration: Aïda Amer/Axios

Crypto lender BlockFi announced on Twitter that it would halt withdrawals per its terms and conditions, blaming "lack of clarity" into FTX — which has extended it a line of credit — and its affiliated companies.

What they're saying: "We are shocked and dismayed by the news regarding FTX and Alameda," a letter attached to the company's tweet said. "We are not able to operate business as usual."

Context: Amidst the crypto market rout that kicked off in May, BlockFi received a $250 million revolving line of credit from FTX in June.

  • Subsequent to the statement, the company declined to comment further to Axios.
  • The company also urged clients not to make new deposits.
  • FTX itself seems to have gotten into trouble itself by making loans to Alameda.

The bottom line: "We intend to communicate as frequently as possible going foward but anticipate that this will be less frequent than what our clients and other stakeholders are used to," the statement said.

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