In an official replace despatched to purchasers on Nov 14, BlockFi admitted to having “important publicity” to FTX and its affiliated corporations, however insisted it had “the mandatory liquidity to discover all choices”. The information got here as considerably of a shock since on Nov. 8, BlockFi’s founder and chief working officer, Flori Marquez, assured customers in a Twitter thread that each one BlockFi merchandise had been “totally operational” as a result of it had a $400 million line of credit score from FTX US, which is a separate entity from FTX, the worldwide entity affected by the liquidity crunch.
Associated: FTX owned crypto alternate Liquid halts all withdrawals
Within the upcoming weeks, it might come as no shock to study that many extra corporations have been affected by FTX’s collapse. On Nov 15, Crypto lending platform SALT additionally disclosed that it might pause withdrawals and deposits to its platform “efficient instantly” as a result of “the collapse of FTX has impacted our enterprise”, in response to an e mail despatched to its purchasers.
In an e mail captured in a tweet circulating on-line, the corporate shared, “Till we’re in a position to decide the extent of this affect with particular particulars that we really feel assured are factually correct, we now have paused deposits and withdrawals on the Salt platform instantly.”
Shawn Owen, the CEO of SALT denied allegations that it is a sign his firm was “going bust” nonetheless, stating “We didn’t publish this as a discover of going bust. We’re pausing to take care of the autumn out of FTX and to substantiate that non[e] of our counter events have any further dangers in order that we will proceed with most warning with all efforts directed at not going bust. Extra information quickly.”
We didn’t publish this as a discover of going bust. We’re pausing to take care of the autumn out of FTX and to substantiate that non of our counter events have any further dangers in order that we will proceed with most warning with all efforts directed at not going bust. Extra information quickly.
— Shawn Owen (@Shawn_OwenJ) November 15, 2022
On Nov. 15, Cointelegraph reported that the Japanese cryptocurrency alternate Liquid halted withdrawals amid the continuing disaster amid centralized crypto exchanges. The FTX-owned crypto alternate Liquid took to Twitter to formally announce a suspension of fiat and crypto withdrawals on its Liquid World platform.
Solely a day after denying that almost all of its property had been held on FTX earlier than the alternate’s collapse, BlockFi is allegedly making ready to file for chapter, in response to a supply aware of the matter, as reported by the WSJ.
Fiat and crypto withdrawals have been suspended on Liquid World in compliance with the necessities of voluntary Chapter 11 proceedings in the US.
Till additional discover we’d counsel to not deposit both FIAT or Crypto
We’ll present updates when obtainable.
— Liquid World Official (@Liquid_Global) November 15, 2022
Cointelegraph reached out to BlockFi and Salt for remark, however didn’t obtain a response in time for publication.
