BlockFi reportedly mulling bankruptcy, SALT pauses withdrawals and deposits

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In an official replace despatched to shoppers on Nov 14, BlockFi admitted to having “important publicity” to FTX and its affiliated corporations, however insisted it had “the mandatory liquidity to discover all choices”. The information got here as considerably of a shock since on Nov. 8, BlockFi’s founder and chief working officer, Flori Marquez, assured customers in a Twitter thread that every one BlockFi merchandise have been “absolutely operational” as a result of it had a $400 million line of credit score from FTX US, which is a separate entity from FTX, the worldwide entity affected by the liquidity crunch.

Related: FTX owned crypto exchange Liquid halts all withdrawals

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Within the upcoming weeks, it could come as no shock to be taught that many extra corporations have been affected by FTX’s collapse. On Nov 15, Crypto lending platform SALT additionally disclosed that it might pause withdrawals and deposits to its platform “efficient instantly” as a result of “the collapse of FTX has impacted our enterprise”, in response to an e-mail despatched to its shoppers.

In an e-mail captured in a tweet circulating on-line, the corporate shared, “Till we’re capable of decide the extent of this impression with particular particulars that we really feel assured are factually correct, now we have paused deposits and withdrawals on the Salt platform instantly.”

Shawn Owen, the CEO of SALT denied allegations that it is a sign his firm was “going bust” nonetheless, stating “We didn’t publish this as a discover of going bust. We’re pausing to take care of the autumn out of FTX and to verify that non[e] of our counter events have any further dangers in order that we are able to proceed with most warning with all efforts directed at not going bust. Extra information quickly.”

On Nov. 15, Cointelegraph reported that the Japanese cryptocurrency exchange Liquid halted withdrawals amid the continuing disaster amid centralized crypto exchanges. The FTX-owned crypto change Liquid took to Twitter to formally announce a suspension of fiat and crypto withdrawals on its Liquid World platform.

Solely a day after denying that the majority of its assets were held on FTX earlier than the change’s collapse, BlockFi is allegedly getting ready to file for chapter, in response to a supply aware of the matter, as reported by the WSJ.

Cointelegraph reached out to BlockFi and Salt for remark, however didn’t obtain a response in time for publication.