BlockFi’s Clients Are Not Allowed To Post New Funds

According to a customer email that The Block viewed, crypto lender BlockFi has put customer loans into deferment.

The email clearly states:

“At this time, clients do not have the ability to post new funds to BlockFi. As a result, we are putting your loan into administrative forbearance. Any amounts due, including interest and maturity payments, are placed on hold until further notice.”

The customer email said that the interest rate on BlockFi loans will be set to 0% with a starting date of November 11, adding that “margin call requirements and auto liquidations at predefined loan-to-value levels are currently paused.”

The email stated that clients are not required to make payments on loans that have matured and that debts would not be recorded as late by credit reporting agencies. It states that loan holders would not be charged late fees for any payments. It doesn’t seem like borrowers asked for loan forbearance.

As Coincu reported, BlockFi stated that substantial exposure to FTX and connected company entities were the reason for pausing customer withdrawals on November 10.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

Coincu News