Nov 10, 2022 - Economy

BlockFi halts withdrawals amid FTX turmoil

Brady Dale

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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BlockFi halts withdrawals amid FTX turmoil

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