This Bitcoin Platform Stops Processing After FTX!

The FTX crisis also affected some Bitcoin and altcoin platforms. Due to the uncertainty about the financial situation of FTX, BlockFi announced that it has suspended the withdrawal processes. In addition, FTX US, the US arm of FTX, announced that the processes could be stopped in a few days. Here are the details…

Bitcoin platform BlockFi stops processes

Crypto loan service BlockFi has announced that it will suspend services due to the ongoing collapse of FTX. On the evening of November 10, the company posted an update to its Twitter account stating that it would cease services. The company said it will restrict platform activity and pause customer pull processes. It also asked users not to deposit money into their wallets or interest accounts. However, he did not explicitly say that the deposit would be disabled. BlockFi used the following terms:

We were shocked and appalled by the news about FTX and Alameda. Like the rest of the world, we learned about this via Twitter. As we reported, over the past few days, it has been revealed that a valuable portion of Alameda Research’s assets are tied to FTX’s FTT token rather than traditional assets. This controversy sparked a bankruptcy panic at FTX. To raise funds and hedge against further losses, FTX would enter into a buyout settlement with Binance. However, when Binance looked at FTX’s financial ledger, it said they “won’t be able to fix the situation” and withdrew from the contract.

There is also uncertainty for FTX US

The effects of the failed deal continue today, with CEO Sam Bankman-Fried admitting to failure. BlockFi indirectly referred to these events as the reason for the suspension of its service. “As the status of, FTX US and Alameda is unclear, we are unable to run business as usual,” he wrote. The company stated that it will provide updates on the situation.

BlockFi has not made it clear whether it is financially affiliated with FTX or its related companies. Earlier this week, BlockFi COO and co-founder Flori Marquez said that the company has a $400 million loan from FTX.US, not FTX. It’s unclear whether BlockFi has any other exposure.

Meanwhile, things seem to be getting worse for FTX’s US arm, FTX US. According to the information on the exchange’s website, processes in FT US can be closed for a few troubles. In the statements made, “Please close the situations you want to close. Withdrawal processes are now open. We will report the developments”.

BlockFi’s competitor “closely” escaped

In the midst of this, rival crypto lending firm Nexo said on Tuesday it has barely recovered from losses from the collapse of FTX. Nexo definitely pulled back balances quickly before FTX’s collapse and is still operating as usual. FTX and its international companies are also shutting down activity and blocking some withdrawal processes. This is due to regulatory woes as well as obvious financial shortcomings.

Similar Articles



Please enter your comment!
Please enter your name here


Most Popular