BREAKING: BlockFi Prepares For Imminent Bankruptcy

The collapse of FTX and Alameda has startled and appalled Crypto lender BlockFi. They are now unable to conduct business as usual due to the lack of clarity on what is happening with FTX.com, FTX US, and Alameda.

According to Watcher.Guru, the crypto lender is preparing for imminent bankruptcy, citing FTX collapse.

They stopped the withdrawals on their platform after being impacted by FTX‘s collapse. The company recently expressed their sense of being shocked and dismayed about the failure of FTX and Alameda in a letter that was posted on Twitter.

On their website, there was an alert pinned on top of the display, saying that BlockFi has paused the act of withdrawing as their Terms. They request users not to deposit to BlockFi Wallet or Interest Accounts at the moment.

As for the latest update, the crypto lender said that they are now in a heartbreaking position and provided some significant updates for users.

1. 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.
2. Our priority has been and will continue to be to protect our clients and their interests.
3. 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.   
4. 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.

It should be known that the firm was having severe financial troubles at the time FTX acquired the company in July of this year. The platform lost $80 million as a result of Three Arrows Capital’s failure. Although FTX has failed, the company initially call itself “totally functional”.

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