Crypto Lending Platform BlockFi Announces Withdrawal Freeze, Blames ‘Lack of Clarity’ at FTX and Alameda Research

In the latest sign of fallout from the collapse of the digital asset exchange FTX, crypto lending platform BlockFi now says it has stopped allowing its customers to withdraw funds.

The company just posted a message to customers on Twitter stating that a “lack of clarity” on the status of FTX and its trading arm Alameda Research is to blame.

“We are shocked and dismayed by the news regarding FTX and Alameda. We, like the rest of the world, found out about this situation through Twitter.

Given the lack of clarity on the status of FTX.com, FTX US and Alameda, we are not able to operate business as usual.

Our priority has been and will continue to be to protect our clients and their interests. Until there is further clarity, we are limiting platform activity, including pausing client withdrawals as allowed under our Terms. We will share more specifics as soon as possible. We request that clients not deposit to BlockFi Wallet or Interest Accounts at this time.

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

According to BlockFi’s Q2 report on assets under management, the company has about 650,000 funded accounts, $500,000,000 in wallet assets, $2,600,000,000 in yield assets, $3,900,000,000 in total deployable client assets and $1,800,000,000 in institutional and retail loans.

At the time, the company labeled its net exposure at $600,000,000.

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Featured Image: Shutterstock/Eren ARIK/Andy Chipus