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Friday, December 9, 2022

Crypto Playpen: BlockFi Halts Withdrawals Following FTX Collapse

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“We are shocked and dismayed by the news about FTX and Alameda,” BlockFi announced on its Twitter account. “We, like the rest of the world, learned of this situation through Twitter,” he added.

BlockFi said that due to the “lack of clarity” regarding FTX and Alameda, “we are unable to operate as usual” and that until there is “more clarity, we are limiting platform activity, including pausing withdrawals.” the clients”.

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The company asked customers not to deposit into BlockFi Wallet or interest accounts at this time, and said it will share more details “as soon as possible,” though it warned it would likely communicate “less frequently” than its customers use and concerned parties.

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In June, BlockFi received a $250 million ransom from FTX to help keep it afloat, MarketWatch recalls.

The FTX fiasco has spread fears of “contagion” in the broader cryptocurrency industry and sent Bitcoin price to its lowest level since November 2020.

The crypto sector tries to recover positions this Friday after the crash this week. Bitcoin is trading at $17,000 and Ethereum at $1,200.

Binance will not save FTX

“Our hope was to help FTX clients provide liquidity, but the issues are beyond our control or ability to help”Binance said in a statement.

Just 24 hours ago, Changpeng “CZ” Zhao, CEO and founder of Binance, the world’s leading cryptocurrency exchange, had announced an agreement with FTX.com, its main competitor, to buy the firm after it went through a crypto bull run of users of the platform, whose massive withdrawals put the entire sector in crisis.

Nevertheless, this afternoon company sources confirmed to Bloomberg and other international agencies that it was unlikely that this would happenafter they detected a gap between assets and liabilities in FTX of possibly more than $6 billion.

To this is added that Binance could face an investigation from the United States Securities and Exchange Commission (SEC), which is investigating whether FTX properly handled customer funds.as well as its relationship to other parts of the crypto empire founded by Sam Bankman-Fried.

Confirmation that Binance would withdraw from the trade hit a panicked market again and deepened the crypto slump.

Source: Ambito

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