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BlockFi limits platform activity, including a halt on client withdrawals

“We intend to communicate as frequently as possible […] but anticipate that this will be less frequent than what our clients and other stakeholders are used to.”

Crypto lender BlockFi has halted client withdrawals on its platform as part of a broader limit to activity in the wake of FTX’s collapse.

pic.twitter.com/zNF1uP6evl

— BlockFi (@BlockFi) November 11, 2022

The company said in the Nov. 11 tweet that a “lack of clarity on the status of FTX.com, FTX US and Alameda” has prevented it from being able to operate as normal.

As a result, it has limited platform activity until there is further clarity on the developing situation, it said. 

The firm has also requested that clients do not deposit to BlockFi wallets or Interest Accounts at this point in time.

It follows only days after a Nov 8. Twitter thread in which BlockFi founder and COO Flori Marquez claimed that all BlockFi products were fully operational, as they have a $400 million line of credit from FTX US, which is a separate entity from the one affected by a liquidity crunch.

2) @BlockFi is an independent business entity. We have a $400MM line of credit from https://t.co/rFQz2hySwu (not https://t.co/oVC3gZQ6lb) and will remain an independent entity until at least July 2023.

— Flori Marquez (@FounderFlori) November 8, 2022

However, recent developments from FTX US, in which a banner at the top of the FTX US website said “trading may be halted on FTX US in a few days” raises questions about the financial impact the fallout of FTX has had on its US arm.

This is a developing story and more information will be added as it becomes available.

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