BlockFi says platform pause will continue

Quick Take

  • Crypto lending firm BlockFi said it would continue to pause many of its platform activities “for now” after FTX filed for bankruptcy protection last week.

Crypto lending firm BlockFi said it would continue to pause many of its platform activities "for now" after FTX filed for bankruptcy protection last week.

"The rumors that a majority of BlockFi assets are custodied at FTX are false," the company said in a blog post, adding that it did have "significant exposure to FTX and associated corporate entities."

BlockFi announced late last week that it had paused withdrawals. Just days before, as Binance weighed buying FTX, BlockFi said its products were "fully functional." 

The company asked clients not to submit any deposits to BlockFi Wallet or Interest accounts. 

"There are a number of scenarios that may be available to us, and we are doing the work now to determine the best path forward," the company said. "BlockFi has the necessary liquidity to explore all options and we have engaged expert outside advisors that are helping us navigate BlockFi’s next steps."

BlockFi customers expressed dismay and confusion in the wake of last week's announcement, The Block previously reported.


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