BlockFi reportedly mulling bankruptcy, SALT pauses withdrawals and deposits


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In an official update sent to clients on Nov. 14, BlockFi acknowledged that it had “substantial exposure” to FTX and its affiliates, but lacked the “liquidity necessary to consider all options.” Flori Marquez, BlockFi founder and chief operating officer, said on Nov. 8 that with a $400 million line of credit from FTX, all BlockFi products would be “fully It’s working,” he assured users in a Twitter thread, so the news came as a bit of a surprise. The United States, a separate entity from FTX, a global entity affected by the liquidity crisis.

RELATED: FTX-Owned Crypto Exchange Liquid Halts All Withdrawals

In the coming weeks, it may come as no surprise to learn that even more companies have been affected by the FTX debacle. On November 15th, cryptocurrency lending platform SALT temporarily suspended withdrawals and deposits to its platform “immediately” because “the collapse of FTX has impacted our business,” according to an email sent to customers. He also announced that he would stop.

In an email captured in a tweet circulating online, the company shared:

SALT CEO Sean Owen has denied claims this is a signal that his company is “going bankrupt,” but said, “We did not publish this as a notice of bankruptcy. Dropping out of FTX. Pausing to address and make sure everything is fine.[e] One of our counterparties carries additional risks and can proceed with the utmost caution to avoid bankruptcy. More details soon. ”

On November 15, Cointelegraph reported that Japanese cryptocurrency exchange Liquid has suspended withdrawals amid an ongoing crisis among centralized crypto exchanges. FTX-owned cryptocurrency exchange Liquid made an official post on his Twitter account. publication Suspension of fiat and cryptocurrency withdrawals on the Liquid Global platform.

BlockFi is said to be preparing to file for bankruptcy, just one day after denying that most of its assets were held in FTX before the exchange’s collapse. report by WSJ.

Cointelegraph reached out to Blockphi and Salt for comment, but did not receive a response by publication.