BlockFi Suspends Withdrawals, Citing Uncertainty Over FTX Collapse

BlockFi, a cryptocurrency lender said that it can no longer operate its business “as usual” and is limiting withdrawals on the platform, citing a lack of clarity on the status of Sam Bankman-Fried's beleaguered crypto exchange FTX.

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What Happened: The company said it is shocked by the news regarding FTX (FTT) and Alameda, which sent shockwaves through the cryptocurrency market and pulled down prices of coins such as Bitcoin BTC/USD, Ethereum ETH/USD and Dogecoin DOGE/USD.

pic.twitter.com/zNF1uP6evl

— BlockFi (@BlockFi) November 11, 2022

BlockFi tweeted that it found out about the FTX saga through Twitter. The cryptocurrency platform also asked its users to “not deposit” to its BlockFi Wallet or its Interest Account. It warned it likely would communicate "less frequently" than what its clients and stakeholders are used to.

It is worth noting that in June, BlockFi received a $250 million bailout from FTX to help keep it afloat.

Price Action: FTT is trading at $2.94 up 20% in the last 24 hours, according to Benzinga Pro.

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