BlockFi suspends crypto withdrawal amid FTX liquidity crisis

Popular Crypto lending platform BlockFi suspended its services to remain away from any kind of negative impact because of the liquidity crisis issue on the FTX exchange.

In the last 3 days, the whole crypto industry shook because of the Binance vs FTX controversy, which resulted in a liquidity crisis for the FTX exchange. Due to the bad relationship between FTX & Binance exchange, Binance CEO Changpeng Zhao decided to sell the FTX token( FTT) holdings to cut off the relationship with FTX exchange as a rival but before the sale of the FTT, FTX exchange faced a negative impact & finally on 9 November exchange stopped its services fully.

On 11 November, the BlockFi team announced on Twitter that it is suspending its services because of the ongoing liquidity crisis with the FTX exchange.

The team clearly said that it will not resume its services until the matter of FTX, FTX subsidiary FTX.us & Alameda Research will be resolved. 

BlockFi stated:

“Until there will be further clarity, we are limiting platform activity, Including pausing client withdrawals as allowed under our terms.” The company also stated that it will give information regarding this thing more precisely.

This situation is showing that the problem of the FTX resulted in a very big problem for other rival companies and this is also a lesson for all the crypto companies to work together to grow in this industry.

Earlier this, on 8 November, BlockFi co-founder & COO Flori Marquez shared her opinion and confirmed that BlockFi is an independent crypto company So operations of this crypto platform will run smoothly. 

At the same time, BlockFi Co-founder confirmed that BlockFi has a $400M line of credit from FTX.us, not from FTX. 

Read also: Internal memo reveals FTX will raise funds next week